By Wendy Van Sickle
Columbus, Ohio, July 26 – Bank of Montreal priced $2.81 million of callable barrier notes with memory coupons due July 24, 2025 linked to the performance of the common stock of U.S. Bancorp, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon equal to 13.4% per year if the stock’s closing level is at least 60% of its initial level on the relevant observation date. Previously unpaid coupons, if any, will be automatically included whenever a contingent coupon is paid.
The notes will be callable at par plus any coupon otherwise due on any quarterly observation date after six months.
If the notes are not called and the stock finishes at or above its 60% trigger level, the payout will be par. Otherwise, investors will lose 1% for each 1% of stock decline from its initial level.
BMO Capital Markets Corp. is the agent.
| Issuer: | Bank of Montreal
|
| Issue: | Callable barrier notes with memory coupons
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| Underlying fund: | U.S. Bancorp
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| Amount: | $2,812,000
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| Maturity: | July 24, 2025
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| Coupon: | 13.4% per year, payable quarterly if the stock’s closing level is at or above its coupon barrier level on the relevant observation date; coupon payment events will automatically include any previously unpaid coupons
|
| Price: | Par
|
| Payout at maturity: | If stock finishes at or above its trigger level, par; otherwise, investors will lose 1% for each 1% of stock decline from its initial level
|
| Call option: | At par plus any coupon due on any quarterly observation date after six months
|
| Initial level: | $32.02
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| Coupon barrier level: | $19.21; 60% of initial level
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| Trigger level: | $19.21; 60% of initial level
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| Pricing date: | July 20
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| Settlement date: | July 25
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| Agent: | BMO Capital Markets Corp.
|
| Fees: | 1.75%
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| Cusip: | 06369NKM2
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