Published on 9/7/2021 in the Prospect News Structured Products Daily.
New Issue: BMO sells $4.32 million callable barrier notes with contingent coupon on three indexes
By William Gullotti
Buffalo, N.Y., Sept. 7 – Bank of Montreal priced $4.32 million of callable barrier notes with contingent coupons due Sept. 2, 2025 linked to the S&P 500 index, the Nasdaq-100 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon equal to 7.65% per year if each index’s closing level is at least 70% of its initial level on the relevant observation date.
The notes will be callable on any monthly observation date after six months.
If the notes are not called, the payout at maturity will be par unless any index finishes below its 65% trigger level, in which case investors will lose 1% for each 1% decline based on the final level from the initial level of the least-performing index.
BMO Capital Markets Corp. is the agent.
Issuer: | Bank of Montreal
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Issue: | Callable barrier notes with contingent coupons
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Underlying indexes: | S&P 500 index, Nasdaq-100 index, Russell 2000 index
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Amount: | $4,320,000
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Maturity: | Sept. 2, 2025
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Coupon: | 7.65% per year, payable monthly if each index’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 unless any index finishes below its trigger level, in which case investors will lose 1% for each 1% decline from the initial level of the least-performing index
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Call option: | At par plus any coupon due on any monthly observation date after six months
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Initial levels: | 4,509.37 for S&P, 15,432.95 for Nasdaq, 2,277.151 for Russell
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Coupon barrier levels: | 3,156.56 for S&P, 10,803.07 for Nasdaq, 1,594.006 for Russell; 70% of initial levels
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Trigger levels: | 2,931.09 for S&P, 10,031.42 for Nasdaq, 1,480.148 for Russell; 65% of initial levels
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Pricing date: | Aug. 27
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Settlement date: | Sept. 1
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Agent: | BMO Capital Markets Corp.
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Fees: | 0.25%
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Cusip: | 06368EUR1
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