By Kiku Steinfeld
Chicago, Nov. 28 – Bank of Montreal priced $448,000 of autocallable barrier notes with contingent coupons due June 30, 2023 linked to the least performing of the SPDR S&P Oil & Gas Exploration & Production ETF and the Energy Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a monthly coupon equal to 13.5% per year if each ETF’s closing level is at least 65% of its initial level on the corresponding observation date.
The notes will be automatically redeemed at par plus the contingent coupon if each ETF closes above its initial level on any monthly observation date after six months.
If the notes have not been called and each ETF finishes at or above its 65% trigger level, the payout at maturity will be par plus the final coupon.
Otherwise, investors will be fully exposed to the decline of the worst performer from its initial level.
BMO Capital Markets Corp. is the selling agent.
Issuer: | Bank of Montreal
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Issue: | Autocallable barrier notes with contingent coupons
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Underlying ETFs: | SPDR S&P Oil & Gas Exploration & Production ETF and Energy Select Sector SPDR fund
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Amount: | $448,000
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Maturity: | June 30, 2023
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Coupon: | 13.5% per year, payable monthly if each ETF’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: | If each ETF finishes at or above trigger level, par plus final coupon; otherwise, 1% loss for each 1% decline of the worst performer from initial level
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Call: | At par plus contingent coupon if both ETFs close at or above initial levels on any monthly observation date after six months
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Initial levels: | $78.75 for energy, $138.60 for oil
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Coupon barrier levels: | $51.19 for energy, $90.09 for oil; 65% of initial levels
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Trigger levels: | $51.19 for energy, $90.09 for oil; 65% of initial levels
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Pricing date: | March 25, 2022
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Settlement date: | March 30, 2022
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Agent: | BMO Capital Markets Corp.
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Fees: | 0.75%
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Cusip: | 06368GLT2
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