Published on 10/24/2023 in the Prospect News Structured Products Daily.
New Issue: BMO sells $967,000 autocallable barrier notes with contingent coupons on Tesla
By Kiku Steinfeld
Chicago, Oct. 24 – Bank of Montreal priced $967,000 of autocallable barrier notes with contingent coupons due March 31, 2026 linked to the common stock of Tesla, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a monthly coupon equal to 20% per year if the stock closes at or above its coupon barrier level, 60% 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 monthly observation date after six months.
If the notes are not called and the stock finishes at or above its 60% trigger price, the payout at maturity will be par plus any final coupon. Otherwise, investors will lose 1% for each 1% decline of the stock from its initial price.
BMO Capital Markets Corp. is the selling agent.
| Issuer: | Bank of Montreal
|
| Issue: | Autocallable barrier notes with contingent coupons
|
| Underlying stock: | Tesla, Inc.
|
| Amount: | $967,000
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| Maturity: | March 31, 2026
|
| Coupon: | 20% per year, payable monthly if stock closes at or above coupon barrier level on related observation date
|
| Price: | Par
|
| Payout at maturity: | If the stock finishes at or above trigger price, par plus any final coupon; otherwise, investors will lose 1% for each 1% decline of stock from its initial price
|
| Call: | At par plus contingent coupon if the stock closes at or above initial price on any monthly observation date after six months
|
| Initial price: | $193.88
|
| Coupon barrier: | $116.33, 60% of initial price
|
| Trigger price: | $116.33, 60% of initial price
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| Pricing date: | March 29, 2023
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| Settlement date: | March 31, 2023
|
| Agent: | BMO Capital Markets Corp.
|
| Fees: | 4.25%
|
| Cusip: | 06374VQV1
|
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