Published on 1/20/2022 in the Prospect News Structured Products Daily.
New Issue: BMO sells $5.17 million callable barrier notes with contingent coupon on S&P, Russell, Nasdaq
By Wendy Van Sickle
Columbus, Ohio, Jan. 20 – Bank of Montreal priced $5.17 million of callable barrier notes with contingent coupons due Oct. 20, 2023 linked to the Nasdaq-100 index, the S&P 500 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 5.55% per year if each index’s closing level is at least 50% of its initial level on the relevant observation date.
The notes will be callable on any monthly observation date starting April 14
If the notes are not called, the payout at maturity will be par if each index finishes at or above its 50% 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 indexes: | S&P 500 index, Russell 2000 index, Nasdaq-100 index
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Amount: | $5,169,000
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Maturity: | Oct. 20, 2023
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Coupon: | 5.55% 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: | If all indexes finish at or above trigger level, par; otherwise, lose 1% for every 1% decline of the worst performer from its initial level
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Call option: | At par plus any coupon due on any monthly observation date starting April 14
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Initial levels: | 4,662.85 for S&P, 2,162.456 for Russell, 15,611.59 for Nasdaq
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Coupon barrier levels: | 2,331.43 for S&P, 1,081.228 for Russell, 7,805.8 for Nasdaq; 50% of initial levels
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Trigger levels: | 2,331.43 for S&P, 1,081.228 for Russell, 7,805.8 for Nasdaq; 50% of initial levels
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Pricing date: | Jan. 14
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Settlement date: | Jan. 20
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Agent: | BMO Capital Markets Corp.
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Fees: | 0.7%
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Cusip: | 06368GF69
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