Published on 11/18/2020 in the Prospect News Structured Products Daily.
New Issue: BMO sells $714,000 autocallable barrier notes with contingent coupon on Nasdaq, Russell
By Taylor Fox
New York, Nov. 18 – Bank of Montreal priced $714,000 of autocallable barrier notes with contingent coupons due Jan. 31, 2022 linked to the Nasdaq-100 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Every month, the notes will pay a coupon equal to 8% per year if each index’s closing level is at least 65% of the initial level on the observation date for that month.
The notes will be automatically redeemed at par plus the contingent coupon if each index closes above its initial level on any monthly observation date beginning on April 27, 2021.
If the notes are not called, the payout at maturity will be par unless the final level of either index is less than 65% of the initial level, in which case investors will lose 1% for each 1% decline from the initial level of the least performing index.
BMO Capital Markets Corp. is the agent.
| Issuer: | Bank of Montreal
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| Issue: | Autocallable barrier notes with contingent coupons
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| Underlying indexes: | Nasdaq-100 index and Russell 2000 index
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| Amount: | $714,000
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| Maturity: | Jan. 31, 2022
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| Coupon: | 8% per year, payable monthly if each index’s closing level is at least 65% of the initial level on the observation date for that month
|
| Price: | Par
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| Payout at maturity: | Par unless the final level of either index is less than 65% of the initial level, in which case investors will lose 1% for each 1% decline from the initial level of the least performing index
|
| Call: | At par plus contingent coupon if indexes close at or above initial levels on any monthly observation date beginning April 27, 2021
|
| Initial levels: | 11,350.74 for Nasdaq, 1,561.577 for Russell
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| Coupon barrier levels: | 7,377.98 for Nasdaq, 1,015.025 for Russell, 65% of initial levels
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| Trigger levels: | 7,377.98 for Nasdaq, 1,015.025 for Russell, 65% of initial levels
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| Pricing date: | Oct. 29
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| Settlement date: | Nov. 3
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 0.75%
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| Cusip: | 06368E2K7
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