Published on 9/1/2021 in the Prospect News Structured Products Daily.
New Issue: BMO sells $4.25 million callable barrier notes with contingent coupon on three indexes
By Kiku Steinfeld
Chicago, Sept. 1 – Bank of Montreal priced $4.25 million of callable barrier notes with contingent coupons due Aug. 23, 2024 linked to the S&P 500 index, the Nasdaq-100 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly coupon equal to 10.05% per year if each index’s closing level is at least 75% of its initial level on the relevant observation date.
The notes will be callable on any quarterly observation date.
If the notes are not called, the payout at maturity will be par unless any index finishes below its 60% trigger level, in which case investors will lose 1% for each 1% decline of the least-performing index.
BMO Capital Markets Corp. is the agent.
| Issuer: | Bank of Montreal
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| Issue: | Callable barrier notes with contingent coupons
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| Underlying indexes: | S&P 500 index, Nasdaq-100 index, Russell 2000 index
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| Amount: | $4,250,000
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| Maturity: | Aug. 23, 2024
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| Coupon: | 10.05% 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
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| Payout at maturity: | Par unless any index finishes below its trigger level, in which case investors will lose 1% for each 1% decline of least-performing index
|
| Call option: | At par plus any coupon due on any quarterly observation date
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| Initial levels: | 4,441.67 for S&P, 2,167.600 for Russell, 15,092.57 for Nasdaq
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| Coupon barrier levels: | 3,331.25 for S&P, 1,625.700 for Russell, 11,319.43 for Nasdaq; 75% of initial levels
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| Trigger levels: | 2,665.00 for S&P, 1,300.560 for Russell, 9,055.54 for Nasdaq; 60% of initial levels
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| Pricing date: | Aug. 20
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| Settlement date: | Aug. 25
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 0%
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| Cusip: | 06368EVH2
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