Chicago, Oct. 25 – Bank of Montreal priced $179,000 of autocallable notes with contingent coupons due May 31, 2023 linked to the least performing of the Energy Select Sector SPDR fund and the SPDR S&P Oil & Gas Exploration & Production ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a monthly coupon equal to 8.5% per year if each ETF’s closing level is at least 55% 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 55% 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, payable in cash or shares at the issuer’s option.
BMO Capital Markets Corp. is the agent.
Issuer: | Bank of Montreal
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Issue: | Autocallable notes with contingent coupons
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Underlying funds: | Energy Select Sector SPDR fund and the SPDR S&P Oil & Gas Exploration & Production ETF
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Amount: | $179,000
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Maturity: | May 31, 2023
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Coupon: | 8.5% 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 all ETFs close at or above initial levels on any monthly observation date after six months
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Initial levels: | $67.64 for energy, $108.12 for oil
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Coupon barrier levels: | $37.20 for energy, $59.47 for oil; 55% of initial levels
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Trigger levels: | $37.20 for energy, $59.47 for oil; 55% of initial levels
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Pricing date: | Feb. 23
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Settlement date: | Feb. 28
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Agent: | BMO Capital Markets Corp.
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Fees: | 0.75%
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Cusip: | 06369NAR2
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