Published on 6/6/2022 in the Prospect News Structured Products Daily.
New Issue: BMO sells $5.68 million autocallable notes with contingent coupons on tech stock basket
By William Gullotti
Buffalo, N.Y., June 6 – Bank of Montreal priced $5.68 million of autocallable notes with a contingent coupons due March 3, 2025 linked to an equally-weighted basket consisting of the stocks of Apple Inc., Amazon.com, Inc., Microsoft Corp. and Nvidia Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a monthly coupon equal to 10% per year if the basket closes at or above the coupon barrier level, 70% of initial level, on the relevant 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 coupon barrier, the payout at maturity will be par plus the final coupon.
If the basket finishes below its coupon barrier but at or above its 60% trigger level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the basket declines from its initial level.
BMO Capital Markets Corp. is the agent.
| Issuer: | Bank of Montreal
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| Issue: | Autocallable notes with contingent coupon
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| Underlying stocks: | Apple Inc, Amazon.com, Inc., Microsoft Corp., Nvidia Corp.; equal weights
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| Amount: | $5,679,000
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| Maturity: | March 3, 2025
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| Coupon: | 10% per year, payable monthly if basket closes at or above coupon barrier level on related observation date
|
| Price: | Par
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| Payout at maturity: | If the basket finishes at or above coupon barrier, par plus final coupon; if the basket finishes below coupon barrier but at or above trigger level, par; otherwise, full exposure to basket decline from initial level
|
| Call: | At par plus contingent coupon if the basket closes at or above initial level on any observation date after six months
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| Initial levels: | $143.78 for Apple, $2,221.55 for Amazon, $265.90 for Microsoft, $178.51 for Nvidia
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| Coupon barrier: | 70% of initial level
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| Trigger level: | 60% of initial level
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| Pricing date: | May 26
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| Settlement date: | May 31
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 3.2%
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| Cusip: | 06369NBW0
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