Published on 8/6/2023 in the Prospect News Structured Products Daily.
New Issue: BMO sells $680,000 autocallable barrier notes with contingent coupons on basket
By Kiku Steinfeld
Chicago, Aug. 7– Bank of Montreal priced $680,000 of autocallable barrier notes with contingent coupons due Nov. 28, 2025 linked to an equally-weighted basket of stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of Alphabet Inc., Apple Inc., Advanced Micro Devices, Inc. and Block, Inc.
The notes will pay a monthly coupon equal to 10% per year if the basket’s closing level is at least 70% 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.
Otherwise, investors will be fully exposed to the decline of the basket from its initial level, payable in shares or cash at the issuer’s option.
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: | Alphabet Inc., Apple Inc., Advanced Micro Devices, Inc. and Block, Inc.; equal weights
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| Amount: | $680,000
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| Maturity: | Nov. 28, 2025
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| Coupon: | 10% 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 if basket finishes at or above trigger level; otherwise, lose 1% for each 1% that the basket declines from initial level, payable in shares or cash at the issuer’s option
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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 level: | $149.40 for Apple, $90.89 for Alphabet, $79.75 for AMD, $74.15 for Block
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| Coupon barrier level: | 70% of initial level
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| Trigger level: | 60% of initial level
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| Pricing date: | Feb. 23, 2023
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| Settlement date: | Feb. 28, 2023
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 3.35%
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| Cusip: | 06369NFQ9
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