Published on 7/18/2023 in the Prospect News Structured Products Daily.
New Issue: Bank of Montreal prices $50,000 callable barrier notes linked to S&P 500
By Angela McDaniels
Tacoma, Wash., July 18 – Bank of Montreal priced $50,000 of callable barrier notes with contingent coupons due July 30, 2032 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes pay a contingent coupon equal to 7% per year if the index’s closing level is at least 70% of its initial level on the observation date for that month.
Beginning Jan. 26. 2023, the notes are callable at par on any monthly observation date.
If the notes are not called and the index finishes at or above its 60% trigger level, the payout at maturity will be par. Otherwise, investors will lose 1% for each 1% of index decline from its initial level.
BMO Capital Markets Corp. is the agent.
Issuer: | Bank of Montreal
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Issue: | Callable barrier notes with contingent coupons
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Underlying index: | S&P 500 index
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Amount: | $50,000
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Maturity: | July 30, 2032
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Coupon: | 7% per year, payable monthly if index closes at or above coupon barrier level on relevant observation date
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Price: | Par
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Payout at maturity: | Par if index finishes at or above trigger level; otherwise, lose 1% for each 1% of index decline from initial level
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Call option: | Beginning Jan. 26. 2023, callable at par on any monthly observation date
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Initial level: | 4,023.61
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Coupon barrier level: | 2,816.53, or 70% of initial level
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Trigger level: | 2,414.17, or 60% of initial level
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Pricing date: | July 27, 2022
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Settlement date: | July 29, 2022
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Agent: | BMO Capital Markets Corp.
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Fees: | 2.25%
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Cusip: | 06368GXT9
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