Published on 2/6/2024 in the Prospect News Structured Products Daily.
New Issue: BMO sells $3.49 million callable buffer notes with contingent coupon on three indexes
By William Gullotti
Buffalo, N.Y., Feb. 6 – Bank of Montreal priced $3.49 million of callable buffer notes with contingent coupons due Oct. 29, 2024 linked to the Nasdaq-100 index, the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon equal to 7.38% per year if each index’s closing level is at least 80% of its initial level on the relevant observation date.
The notes will be callable on any monthly observation date after six months.
If the notes are not called, the payout at maturity will be par plus the final coupon if each index finishes at or above its 80% trigger level. Otherwise, investors will lose 1% for each 1% decline of the worst performer below 20%.
BMO Capital Markets Corp. is the agent.
| Issuer: | Bank of Montreal
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| Issue: | Callable buffer notes with contingent coupons
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| Underlying indexes: | Nasdaq-100 index, Russell 2000 index, S&P 500 index
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| Amount: | $3,485,000
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| Maturity: | Oct. 29, 2024
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| Coupon: | 7.38% per year, payable monthly if each index’s closing level is at or above its coupon barrier level on the relevant observation date
|
| Price: | Par
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| Payout at maturity: | If all indexes finish above trigger level, par plus final coupon; otherwise, lose 1% for every 1% decline of the worst performer beyond 20%
|
| Call option: | At par plus any coupon due on any monthly observation date after six months
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| Initial levels: | 4,868.55 for S&P, 17,499.3 for Nasdaq, 1,961.865 for Russell
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| Coupon barrier levels: | 3,894.84 for S&P, 13,999.44 for Nasdaq, 1,569.492 for Russell; 80% of initial levels
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| Trigger levels: | 3,894.84 for S&P, 13,999.44 for Nasdaq, 1,569.492 for Russell; 80% of initial levels
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| Pricing date: | Jan. 24
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| Settlement date: | Jan. 29
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 0.25%
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| Cusip: | 06375MSQ9
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