By William Gullotti
Buffalo, N.Y., May 2 – Bank of Montreal priced $1.39 million of autocallable barrier notes with a contingent coupon due Oct. 31, 2024 linked to the common stock of Tesla, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly coupon equal to 15% per year if the stock closes at or above its coupon barrier level, 55% of its initial price, on the relevant observation date.
The notes will be automatically redeemed at par plus the contingent coupon if the stock closes at or above its initial price on any quarterly observation date starting after six months.
If the notes are not called and the stock finishes at or above its coupon barrier, the payout at maturity will be par plus the final coupon.
If the stock finishes below its coupon barrier but at or above its 50% trigger price, the payout at maturity will be par. Otherwise, investors will lose 1% for each 1% decline of the stock from its initial price.
BMO Capital Markets Corp. is the agent.
Issuer: | Bank of Montreal
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Issue: | Autocallable barrier notes with contingent coupon
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Underlying stock: | Tesla, Inc.
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Amount: | $1,394,000
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Maturity: | Oct. 31, 2024
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Coupon: | 15% per year, payable quarterly if stock closes at or above coupon barrier level on related observation date
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Price: | Par
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Payout at maturity: | If the stock closes at or above its coupon barrier, par plus final coupon; if stock finishes below coupon barrier but at or above trigger price, par; otherwise, investors will lose 1% for each 1% decline of stock from its initial price
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Call: | At par plus contingent coupon if the stock closes at or above initial price on any quarterly observation date starting after six months
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Initial price: | $881.51
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Coupon barrier: | $484.83; 55% of initial price
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Trigger price: | $440.76; 50% of initial price
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Pricing date: | April 27
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Settlement date: | April 29
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Agent: | BMO Capital Markets Corp.
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Fees: | 4.25%
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Cusip: | 06368GQG5
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