New Issue: BMO prices $230,000 digital return barrier notes linked to S&P 500

By Kiku Steinfeld

Chicago, Jan. 5 – Bank of Montreal priced $230,000 of 0% digital return barrier notes due April 28, 2028 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

If the index’s return is greater than or equal to its 35% digital return, the payout at maturity will be par plus the gain of the index from its initial level.

If the index’s return is positive but less than the 35% digital return, the payout will be par plus 35%.

If the final level of the index is less than initial level but greater than or equal to its 70% barrier level, investors will receive par.

If the index falls below 70%, investors will lose 1% for every 1% that the index declines from its initial level.

BMO Capital Markets is the agent.

Issuer:	Bank of Montreal
Issue:	Digital return barrier notes
Underlying index:	S&P 500 index
Amount:	$230,000
Maturity:	April 28, 2028
Coupon:	0%
Price:	Par
Payout at maturity:	If index’s return is greater than or equal to 35%, par plus the gain of the index from initial level; if index’s return is positive but less than 35%, par plus 35%; if index declines but not below 70% barrier level, par; otherwise, 1% loss for every 1% that the index declines from initial level
Initial level:	4,071.63
Barrier level:	2,850.14; 70% of initial level
Pricing date:	April 25, 2023
Settlement date:	April 28, 2023
Agent:	BMO Capital Markets
Fees:	3.8315%
Cusip:	06374VRD0

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