New Issue: BMO sells $535,000 callable barrier notes with contingent coupons on S&P 500

By Kiku Steinfeld

Chicago, Nov. 7 – Bank of Montreal priced $535,000 of callable barrier notes with contingent coupons due April 11, 2028 linked to the performance of the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent monthly coupon equal to 7.75% per year if the index’s closing level is at least 65% of its initial level on the relevant observation date.

The notes will be callable at par plus any coupon otherwise due on any monthly observation date after one year.

If the notes are not called and the index finishes at or above its 65% trigger level, the payout 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
Issue:	Callable barrier notes with contingent coupons
Underlying index:	S&P 500 index
Amount:	$535,000
Maturity:	April 11, 2028
Coupon:	7.75%, payable monthly if the index’s closing level is at or above its coupon barrier level on the relevant observation date
Price:	Par
Payout at maturity:	Par plus final coupon if index finishes at or above trigger level, par; otherwise, lose 1% for each 1% of index decline from initial level
Call option:	At par plus any coupon due on any monthly observation date after one year
Initial level:	4,105.02
Coupon barrier level:	2,668.26; 65% of initial level
Trigger level:	2,668.26; 65% of initial level
Pricing date:	April 6, 2023
Settlement date:	April 11, 2023
Agent:	BMO Capital Markets Corp.
Fees:	0.75%
Cusip:	06374VSN7

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