Published on 12/13/2022 in the Prospect News Structured Products Daily.
New Issue: BMO sells $576,000 callable barrier notes with contingent coupon on indexes, ETF
By Kiku Steinfeld
Chicago, Dec. 13 – Bank of Montreal priced $576,000 of callable barrier notes with contingent coupons due April 17, 2025 linked to the iShares MSCI Emerging Markets ETF, the S&P 500 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly coupon equal to 9.25% per year if each underlier’s closing level is at least 65% of its initial level on the relevant observation date.
The notes will be callable on any quarterly observation date after six months.
If the notes are not called, the payout at maturity will be par plus the final coupon if every underlier finishes at or above its 65% trigger level. Otherwise, investors will lose 1% for each 1% decline of the worst performer from its initial level.
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 assets: | iShares MSCI Emerging Markets ETF, Euro Stoxx 50 index, S&P 500 index
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| Amount: | $576,000
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| Maturity: | April 17, 2025
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| Coupon: | 9.25% per year, payable quarterly if each underlier’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 final coupon if all underliers finish at or above trigger level, par; otherwise, investors will lose 1% for each 1% decline of the worst performer from its initial level
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| Call option: | At par on any quarterly observation date after six months
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| Initial levels: | $44.23 for ETF, 4,392.59 for S&P, 3,848.68 for Stoxx
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| Coupon barrier levels: | $28.75 for ETF, 2,855.18 for S&P, 2,501.64 for Stoxx; 65% of initial levels
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| Trigger levels: | $28.75 for ETF, 2,855.18 for S&P, 2,501.64 for Stoxx; 65% of initial levels
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| Pricing date: | April 14
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| Settlement date: | April 20
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 1.75%
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| Cusip: | 06368GQB6
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