Published on 9/21/2020 in the Prospect News Structured Products Daily.
New Issue: BMO sells $2.34 million autocallable barrier notes with contingent coupon on indexes, ETF
By Kiku Steinfeld
Chicago, Sept. 21 – Bank of Montreal priced $2.34 million of autocallable barrier notes with contingent coupons due Dec. 14, 2021 linked to the VanEck Vectors Gold Miners ETF, the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Every month, the notes will pay a coupon equal to 16.4% per year if each asset’s closing level is at least 60% of the initial level on the observation date for that month.
The notes will be automatically redeemed at par plus the contingent coupon if each index closes above its initial level on any observation date beginning in March 2021.
If the notes are not called, the payout at maturity will be par unless the final level of any asset is less than the initial level and any asset ever closes below the trigger level, 60% of the initial level, any day during the life of the notes, in which case investors will lose 1% for each 1% decline from the initial level of the least performing asset.
BMO Capital Markets Corp. is the agent.
| Issuer: | Bank of Montreal
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| Issue: | Autocallable barrier notes with contingent coupons
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| Underlying assets: | VanEck Vectors Gold Miners ETF, S&P 500 index and Russell 2000 index
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| Amount: | $2,340,000
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| Maturity: | Dec. 14, 2021
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| Coupon: | 16.4% per year, payable monthly if each asset’s closing level is at or above coupon barrier level on the observation date for that month
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| Price: | Par
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| Payout at maturity: | Par unless the final level of any asset is less than initial level and any asset ever closes below trigger level, in which case investors will lose 1% for each 1% decline from the initial level of the least performing asset
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| Call: | At par plus contingent coupon if assets close at or above initial levels on any observation date beginning in March 2021
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| Initial levels: | $42.34 for ETF, 3,398.96 for S&P, 1,526.480 for Russell
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| Coupon barrier levels: | $25.40 for ETF, 2,039.38 for S&P, 915.88 for Russell, 60% of initial levels
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| Trigger levels: | $25.40 for ETF, 2,039.38 for S&P, 915.88 for Russell, 60% of initial levels
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| Pricing date: | Sept. 9
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| Settlement date: | Sept. 14
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 0.25%
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| Cusip: | 06367W5D1
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