Published on 7/7/2023 in the Prospect News Structured Products Daily.
New Issue: BMO sells $1.24 million capped leveraged upside participation notes on gold ETF
By Emma Trincal
New York, July 7 – Bank of Montreal priced $1.24 million of 0% market-linked securities –leveraged upside participation to a cap with contingent absolute return and fixed-percentage buffered downside due July 7, 2025 linked to the VanEck Gold Miners ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The payout at maturity will be par plus 150% of any ETF gain, capped at $1,340 per security.
If the ETF falls by up to 20%, the payout will be par plus the absolute value of the ETF’s return.
Otherwise, investors will lose 1% for every 1% that the basket declines beyond 20%.
Wells Fargo Securities, LLC and BMO Capital Markets Corp. are the agents.
Issuer: | Bank of Montreal
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Issue: | Market linked securities –leveraged upside participation to a cap with contingent absolute return and fixed percentage buffered downside
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Underlying: | VanEck Gold Miners ETF
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Amount: | $1,242,000
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Maturity: | July 7, 2025
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | Par plus 150% of any ETF gain, capped at par plus 34%; if ETF falls by up to 20%, par plus absolute value of ETF’s return; otherwise, 1% loss for every 1% decline below 20%
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Initial share price: | $30.11
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Buffer level: | $24.088, 80% of initial level
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Buffer: | 20%
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Pricing date: | June 30
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Settlement date: | July 6
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Agents: | BMO Capital Markets Corp. and Wells Fargo Securities, LLC
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Fees: | 2.575%
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Cusip: | 06374VW93
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