Published on 6/18/2021 in the Prospect News Structured Products Daily.
New Issue: BMO sells $1.1 million autocallable barrier notes with contingent coupon on indexes, ETF
By Wendy Van Sickle
Columbus, Ohio, June 18 – Bank of Montreal priced $1.1 million of autocallable barrier notes with contingent coupons due Sept. 15, 2022 linked to the VanEck Vectors Gold Miners ETF, the S&P 500 index and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
Every month, the notes will pay a coupon equal to 9% per year if each asset’s closing level is at least 65% 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 monthly observation date after six months.
If the notes are not called, the payout at maturity will be par unless the final level of any asset is less than its initial level and any asset ever closes below its 60% trigger 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 Nasdaq-100 index
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Amount: | $1.1 million
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Maturity: | Sept. 15, 2022
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Coupon: | 9% 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 initial level and any asset ever closes below its 60% 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 monthly observation date after six months
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Initial levels: | $38.95 for ETF, 4,239.18 for S&P, 13,960.35 for Nasdaq
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Coupon barrier levels: | $25.32 for ETF, 2,755.47 for S&P, 9,074.23 for Nasdaq; 65% of initial levels
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Trigger levels: | $23.37 for ETF, 2,543.51 for S&P, 8,376.21for Nasdaq; 60% of initial levels
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Pricing date: | June 10
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Settlement date: | June 15
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Agent: | BMO Capital Markets Corp.
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Fees: | 0.25%
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Cusip: | 06368EPB2
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