By William Gullotti
Buffalo, N.Y., April 1 – Bank of Montreal priced $2.39 million of autocallable barrier notes with contingent coupons due Dec. 31, 2024 linked to an equally-weighted basket of airline stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of United Airlines Holdings, Inc., JetBlue Airways Corp., American Airlines, Inc. and Spirit Airlines, Inc.
The notes will pay a monthly coupon equal to 11% per year if the basket’s closing level is at least 60% of its initial level on the corresponding observation date.
The notes will be automatically redeemed at par plus the contingent coupon if the basket closes at or above its initial level on any monthly observation date after six months.
If the notes are not called and the basket finishes at or above its 60% trigger level, the payout at maturity will be par plus the final coupon. Otherwise, investors will lose 1% for each 1% of basket decline from its initial level.
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 basket: | United Airlines Holdings, Inc., JetBlue Airways Corp., American Airlines, Inc., Spirit Airlines, Inc.; equal weights
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Amount: | $2.39 million
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Maturity: | Dec. 31, 2024
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Coupon: | 11% per year, payable monthly if the basket’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 plus final coupon if basket finishes at or above trigger level; otherwise, 1% loss for every 1% of basket decline from initial level
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Call: | At par plus contingent coupon if the basket closes at or above initial level on any monthly observation date after six months
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Initial levels: | $43.86 for United, $14.65 for JetBlue, $17.30 for American, $21.93 for Spirit
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Coupon barrier level: | 60% of initial levels
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Trigger level: | 60% of initial levels
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Pricing date: | March 28
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Settlement date: | March 31
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Agent: | BMO Capital Markets Corp.
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Fees: | 3.5%
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Cusip: | 06368GMW4
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