Chicago, Feb. 2 – Bank of Montreal priced $500,000 of callable barrier notes with contingent coupons due May 16, 2028 linked to the performance of the SPDR S&P Regional Banking ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon equal to 16.2% per year if the ETF’s closing level is at least 60% of its initial level on the relevant observation date.
The notes will be callable at par plus any coupon otherwise due on any quarterly observation date after one year.
If the ETF finishes above its 60% trigger level, the payout will be par. Otherwise, investors will lose 1% for each 1% of ETF decline from its initial level.
BMO Capital Markets Corp. is the agent.
Issuer: | Bank of Montreal
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Issue: | Callable barrier notes with contingent coupons
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Underlying fund: | SPDR S&P Regional Banking ETF
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Amount: | $500,000
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Maturity: | May 16, 2028
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Coupon: | 16.2% per year, payable quarterly if the ETF’s closing level is at or above its coupon barrier level on the relevant observation date
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Price: | Par
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Payout at maturity: | Par if ETF finishes above its trigger level; otherwise, investors will lose 1% for each 1% of ETF decline from its initial level
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Call option: | At par plus any coupon due on any quarterly observation date after one year
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Initial level: | $37.06
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Coupon barrier level: | $22.24; 60% of initial level
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Trigger level: | $22.24; 60% of initial level
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Strike date: | May 10, 2023
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Pricing date: | May 11, 2023
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Settlement date: | May 16, 2023
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Agent: | BMO Capital Markets Corp.
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Fees: | 0.6%
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Cusip: | 06374VV86
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