By William Gullotti
Buffalo, N.Y., April 24 – Bank of Montreal priced $2.21 million autocallable barrier notes with memory coupons due April 5, 2027 linked to the stock performance of Home Depot, Inc. and Palo Alto Networks, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly coupon equal to 12% per year if each stock’s closing level is greater than or equal to 54.5% of its initial level on the corresponding observation date, plus any previously unpaid coupon.
The notes will be automatically redeemed at par plus the contingent coupon if each stock closes at or above its initial level on any quarterly observation date.
If the notes are not called and each stock finishes at or above its 54.5% downside threshold, the payout at maturity will be par plus the final coupon and any previously unpaid coupons.
Otherwise, investors will receive a number of shares of the worst performer equal to $1,000 divided by that stock’s initial level or, at the issuer’s option, the cash equivalent.
BMO Capital Markets Corp. is the agent.
| Issuer: | Bank of Montreal
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| Issue: | Autocallable barrier notes with memory coupons
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| Underlying stocks: | Home Depot, Inc., Palo Alto Networks, Inc.
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| Amount: | $2.21 million
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| Maturity: | April 5, 2027
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| Coupon: | 12% per year, payable quarterly if each stock closes at or above its coupon barrier on the corresponding observation date; coupon payment events will also include any previously unpaid coupons
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| Price: | Par
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| Payout at maturity: | Par plus final coupon if each stock finishes at or above downside threshold; otherwise, receive a number of shares per note of the worst performer equal to $1,000 divided by that stock’s initial level or, at the issuer’s option, the cash equivalent
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| Call: | At par plus contingent coupon if each stock closes at or above its initial level on any quarterly observation date
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| Initial levels: | $383.60 for Home Depot, $284.13 for Palo Alto
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| Coupon barriers: | $209.06 for Home Depot, $154.85 for Palo Alto; 54.5% of initial levels
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| Downside thresholds: | $209.06 for Home Depot, $154.85 for Palo Alto; 54.5% of initial levels
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| Pricing date: | March 28
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| Settlement date: | April 3
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 2%
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| Cusip: | 06369NTH4
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