Published on 8/11/2022 in the Prospect News Structured Products Daily.
New Issue: BMO sells $5.54 million autocallable barrier notes with contingent coupon on indexes
Chicago, Aug. 11 – Bank of Montreal priced $5.54 million of autocallable barrier notes with contingent coupons due March 27, 2023 linked to the least performing of 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 monthly coupon equal to 8.25% per year if each index’s closing level is at least 70% of its initial level on the corresponding observation date.
The notes will be automatically redeemed at par plus the contingent coupon if each index closes at or above its initial level on any monthly observation date after six months.
If the notes have not been called, the payout at maturity will be par plus the final coupon unless either index finishes below its 70% trigger value. Otherwise, investors will lose 1% for every 1% that the lesser-performing index finishes below its initial level.
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 indexes: | Nasdaq-100 index, Russell 2000 index
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| Amount: | $5,541,000
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| Maturity: | March 27, 2023
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| Coupon: | 8.25% 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 plus the final coupon unless either index finishes below its trigger level; otherwise, investors will lose 1% for every 1% that the lesser-performing index finishes below its initial level
|
| Call: | At par plus contingent coupon if indexes close at or above initial levels on any monthly observation date after six months
|
| Initial levels: | 2,202.947 for Russell, 15,986.28 for Nasdaq
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| Coupon barrier levels: | 1,542.063 for Russell, 11,190.4 for Nasdaq; 70% of initial levels
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| Trigger levels: | 1,542.063 for Russell, 11,190.4 for Nasdaq; 70% of initial levels
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| Pricing date: | Dec. 21, 2021
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| Settlement date: | Dec. 27, 2021
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 2.25%
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| Cusip: | 06368GBT3
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