New Issue: Bank of Montreal prices $820,000 autocallable barrier notes linked to airline stocks

By Angela McDaniels

Tacoma, Wash., March 14 – Bank of Montreal priced $820,000 of autocallable barrier notes with contingent coupons due April 1, 2026 linked to an equally weighted basket consisting of the common stocks of Delta Air Lines, Inc., United Airlines Holdings, Inc., Southwest Airlines Co. and American Airlines, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Each month, the notes pay a contingent coupon equal to 10.25% per year if each stock’s closing share price is at least 60% of its initial share price on the observation date for that month.

Beginning Dec. 27, 2023, the notes will be automatically called at par if each stock closes at or above its initial share price on any monthly observation date.

If the notes are not called and each stock finishes at or above its 60% trigger level, the payout at maturity will be par. Otherwise, investors will lose 1% for each 1% that the basket declines from its initial level, payable in shares of the basket stocks.

BMO Capital Markets Corp. is the agent.

Issuer:	Bank of Montreal
Issue:	Autocallable barrier notes with contingent coupons
Underlying stocks:	Delta Air Lines, Inc., United Airlines Holdings, Inc., Southwest Airlines Co. and American Airlines, Inc., equally weighted
Amount:	$820,000
Maturity:	April 1, 2026
Coupon:	10.25% per year, payable monthly if each stock closes at or above its trigger level on the observation date for that month
Price:	Par
Payout at maturity:	Par if each stock finishes at or above its trigger level; otherwise, the physical delivery amount for each stock
Physical delivery amount:	For each stock, a number of shares equal to $250 divided by that stock’s initial share price
Call:	Beginning Dec. 27, 2023, automatically called at par if each stock closes at or above its initial share price on any monthly observation date
Initial share prices:	$46.09 for Delta, $56.03 for United, $35.25 for Southwest and $17.35 for American
Trigger level:	60% of initial level
Pricing date:	June 27, 2023
Settlement date:	June 30, 2023
Agent:	BMO Capital Markets Corp.
Fees:	3.25%
Cusip:	06369NJQ5

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