Published on 4/24/2022 in the Prospect News Structured Products Daily.
New Issue: BMO sells $1.35 million callable barrier notes with contingent coupons on indexes
By Kiku Steinfeld
Chicago, April 25 – Bank of Montreal priced $1.35 million of callable barrier notes with contingent coupons due Sept. 30, 2026 linked to the least performing of 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.
Every quarter, the notes will pay a coupon equal to 6% per year if each index’s closing level is at least 70% of its initial level on the observation date for that quarter.
The notes will be callable at par on any quarterly observation date after March 28, 2022.
If the notes are not called, the payout at maturity will be par unless any index finishes below its 70% trigger level, in which case investors will lose 1% for each 1% decline based on the final level 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: | Callable barrier notes with contingent coupons
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| Underlying indexes: | S&P 500 index, Nasdaq 100 index and Russell 2000 index
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| Amount: | $1.35 million
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| Maturity: | Sept. 30, 2026
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| Coupon: | 6% per year, payable quarterly if each index’s closing level is at or above its coupon barrier level on the observation date for that quarter
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| 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 from the initial level of the least-performing index
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| Call option: | At par on any quarterly observation date after March 28, 2022
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| Initial levels: | 4,352.63 for S&P, 14,770.30 for Nasdaq, 2,229.778 for Russell
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| Coupon barrier levels: | 3,046.84 for S&P, 10,339.21 for Nasdaq, 1,560.845 for Russell; 70% of initial levels
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| Trigger levels: | 3,046.84 for S&P, 10,339.21 for Nasdaq, 1,560.845 for Russell; 70% of initial levels
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| Pricing date: | Sept. 28, 2021
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| Settlement date: | Sept. 30, 2021
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 3.5%
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| Cusip: | 06368EXE7
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