Published on 7/31/2020 in the Prospect News Structured Products Daily.
New Issue: BMO sells $1.53 million autocallable barrier notes with contingent coupon on indexes, ETF
By Wendy Van Sickle
Columbus, Ohio, July 31 – Bank of Montreal priced $1.53 million of autocallable barrier notes with contingent coupons due Oct. 29, 2021 linked to the VanEck Vectors Gold Miners ETF, the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Every month, the notes will pay a coupon equal to 13.25% per year if each asset’s closing level is at least 70% of the initial level on the observation date for that month.
The notes will be automatically redeemed at par plus the contingent coupon if each index closes above its initial level on any observation date beginning in January.
If the notes are not called, the payout at maturity will be par unless the final level of any asset is less than 60% of the initial level, in which case investors will lose 1% for each 1% decline from the initial level of the least performing asset.
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 assets: | VanEck Vectors Gold Miners ETF, S&P 500 index and Russell 2000 index
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Amount: | $1,531,000
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Maturity: | Oct. 29, 2021
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Coupon: | 13.25% per year, payable monthly if each asset’s closing level is at or above coupon barrier level on the observation date for that month
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Price: | Par
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Payout at maturity: | Par unless the final level of any asset is less than trigger level, in which case investors will lose 1% for each 1% decline from the initial level of the least performing asset
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Call: | At par plus contingent coupon if assets close at or above initial levels on any observation date beginning in January
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Initial levels: | $41.83 for ETF, 3,215.63 for S&P, 1,467.555 for Russell
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Coupon barrier levels: | $25.10 for ETF, 1,929.38 for S&P, 880.533for Russell, 60% of initial levels
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Trigger levels: | $25.10 for ETF, 1,929.38 for S&P, 880.533for Russell, 60% of initial levels
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Pricing date: | July 24
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Settlement date: | July 29
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Agent: | BMO Capital Markets Corp.
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Fees: | 0.25%
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Cusip: | 06367W2A0
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