Published on 7/30/2021 in the Prospect News Structured Products Daily.
New Issue: BMO prices $3.1 million autocallable buffer notes with contingent coupon on Nasdaq, Russell
By Wendy Van Sickle
Columbus, Ohio, July 30 – Bank of Montreal priced $3.1 million of autocallable buffer notes with contingent coupons due June 10, 2024 linked to the least performing of the Nasdaq-100 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The interest is payable monthly at an annualized rate of 7.85% if each index closes above its coupon barrier level, 75% of its initial level, on the related observation date.
The notes will be automatically called at par if the least performing index closes at or above its initial index level on any monthly observation date after three months.
If the notes are not called and the least performing index return is above 75% of its initial level, the payout at maturity will be par. Investors will lose 1.3333% for each 1% loss beyond the 25% buffer of the least performing index.
BMO Capital Markets Corp. is the underwriter.
| Issuer: | Bank of Montreal
|
| Issue: | Autocallable buffer notes with contingent coupons
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| Underlying indexes: | Nasdaq-100 index, Russell 2000 index
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| Amount: | $3,099,000
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| Maturity: | June 10, 2024
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| Coupon: | 7.85% annual rate, payable monthly if each index closes above its coupon barrier level on observation date
|
| Price: | Par
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| Payout at maturity: | If the notes are not called and each index finishes above 75% of its initial level, par; otherwise, 1.3333% loss for each 1% that least performing index declines beyond 25% buffer
|
| Call: | Automatically at par if all indexes close at or above their initial level on any monthly observation date after three months
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| Initial levels: | 2,286.412 for Russell, 13,770.77 for Nasdaq
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| Coupon barrier/buffer levels: | 1,714.759 for Russell, 10,328.08 for Nasdaq; 75% of initial levels
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| Pricing date: | June 4
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| Settlement date: | June 9
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 0.1%
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| Cusip: | 06368EP63
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