By William Gullotti
Buffalo, N.Y., April 24 – Bank of Montreal priced $2.12 million of callable barrier notes with contingent coupons due April 15, 2027 linked to the performance of the SPDR S&P 500 ETF Trust, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon equal to 7.25% per year if the ETF’s closing level is at least 70% of its initial level on the relevant observation date.
The notes will be callable at par plus any coupon otherwise due on any quarterly observation date.
If the notes are not called, the payout at maturity will be par plus the final coupon unless the ETF finishes below its 70% trigger level, in which case investors will receive a number of shares per note equal to $1,000 divided by the ETF’s initial level or, at the issuer’s option, the cash equivalent.
BMO Capital Markets Corp. is the agent.
| Issuer: | Bank of Montreal
|
| Issue: | Callable barrier notes with contingent coupons
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| Underlying fund: | SPDR S&P 500 ETF Trust
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| Amount: | $2.12 million
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| Maturity: | April 15, 2027
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| Coupon: | 7.25% per year, payable quarterly if the ETF’s closing level is at or above its coupon barrier level on the relevant observation date
|
| Price: | Par
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| Payout at maturity: | Par plus final coupon unless the ETF finishes below its trigger level, in which case receive a number of shares per note equal to $1,000 divided by the ETF’s initial level or, at the issuer’s option, the cash equivalent
|
| Call option: | At par plus any coupon due on any quarterly observation date
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| Initial level: | $519.32
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| Coupon barrier level: | $363.52; 70% of initial levels
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| Trigger level: | $363.52; 70% of initial levels
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| Strike date: | April 9
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| Pricing date: | April 10
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| Settlement date: | April 15
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| Agent: | BMO Capital Markets Corp.
|
| Fees: | 2.0165%
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| Cusip: | 06369NUY5
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