New Issue: BMO sells $810,000 autocallable notes with contingent coupons on airline basket

Chicago, Dec. 1 – Bank of Montreal priced $810,000 of autocallable notes with a contingent coupons due July 31, 2025 linked to an equally-weighted basket consisting of the stocks of United Airlines Holdings, Inc., JetBlue Airways Corp., American Airlines, Inc. and Delta Air Lines, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a monthly coupon equal to 12.5% per year if the basket closes at or above the coupon barrier level, 50% of initial level, on the relevant observation date.

The notes will be automatically redeemed at par plus the contingent coupon if the basket closes at or above its initial level on any monthly observation date after six months.

If the notes are not called and the basket finishes at or above its 50% trigger level, the payout at maturity will be par.

Otherwise, investors will receive a number of shares of each basket component equal to $1,000 divided by that component’s initial level multiplied by its weighting percentage or, at the issuer’s option, the cash equivalent.

BMO Capital Markets Corp. is the agent.

Issuer:	Bank of Montreal
Issue:	Autocallable notes with contingent coupon
Underlying basket:	United Airlines Holdings, Inc., JetBlue Airways Corp., American Airlines, Inc. and Delta Air Lines, Inc.; equal weights
Amount:	$810,000
Maturity:	July 31, 2025
Coupon:	12.5% per year, payable monthly if basket closes at or above coupon barrier level on related observation date
Price:	Par
Payout at maturity:	If the basket finishes at or above trigger level, par; otherwise, receive a number of shares of each basket component equal to $1,000 divided by that component’s initial level multiplied by its weighting percentage or, at the issuer’s option, the cash equivalent
Call:	At par plus contingent coupon if the basket closes at or above initial level on any monthly observation date after six months
Initial levels:	$42.45 for United, $7.46 for JetBlue, $14.00 for American, $33.90 for Delta
Coupon barrier:	50% of initial level
Trigger level:	50% of initial level
Pricing date:	Oct. 26, 2022
Settlement date:	Oct. 31, 2022
Agent:	BMO Capital Markets Corp.
Fees:	3.5%
Cusip:	06369NDM0

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