Published on 6/27/2022 in the Prospect News Structured Products Daily.
New Issue: BMO sells $1 million callable barrier notes with contingent coupon on three indexes
By Kiku Steinfeld
Chicago, June 27 – Bank of Montreal priced $1 million of callable barrier notes with contingent coupons due Dec. 21, 2026 linked to the least performing of the Russell 2000 index, the Nasdaq-100 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon equal to 9.6% per year if each index’s closing level is at least 70% of its initial level on the relevant quarterly observation date.
The notes will be callable at par on any quarterly observation date starting June 16, 2022.
If the notes are not called and each index finishes at or above its 60% trigger level, the payout at maturity will be par.
Otherwise, investors will lose 1% for each 1% decline of the worst performer from its initial level.
BMO Capital Markets Corp. is the selling agent.
| Issuer: | Bank of Montreal
|
| Issue: | Callable barrier notes with contingent coupons
|
| Underlying indexes: | Russell 2000 index, Nasdaq-100 index, Euro Stoxx 50 index
|
| Amount: | $1 million
|
| Maturity: | Dec. 21, 2026
|
| Coupon: | 9.6% per year, payable quarterly if each index’s closing level is at or above its coupon barrier level on the relevant observation date
|
| Price: | Par
|
| 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
|
| Call option: | At par plus any coupon due on any quarterly observation date starting June 16, 2022
|
| Initial levels: | 16,289.59 for Nasdaq, 2,195.209 for Russell, 4,159.68 for Stoxx
|
| Coupon barriers: | 11,402.71 for Nasdaq, 1,536.646 for Russell, 2,911.78 for Stoxx; 70% of initial levels
|
| Trigger levels: | 9,773.75 for Nasdaq, 1,317.125 for Russell, 2,495.81 for Stoxx; 60% of initial levels
|
| Pricing date: | Dec. 15, 2021
|
| Settlement date: | Dec. 20, 2021
|
| Selling agent: | BMO Capital Markets Corp.
|
| Fees: | 1%
|
| Cusip: | 06368GAW7
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
