Published on 10/23/2020 in the Prospect News Structured Products Daily.
New Issue: BMO sells $470,000 autocallable barrier notes with contingent coupon on Russell, Nasdaq
By Wendy Van Sickle
Columbus, Ohio, Oct. 23 – Bank of Montreal priced $470,000 of autocallable barrier notes with contingent coupons due Oct. 22, 2030 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 9.5% per year if each asset’s closing level is greater than the coupon barrier level, 70% 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 observation date beginning on Jan. 19, 2021.
If the notes are not called, the payout at maturity will be par unless the final level of either asset 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 asset.
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 assets: | Nasdaq-100 index and Russell 2000 index
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| Amount: | $470,000
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| Maturity: | Oct. 22, 2030
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| Coupon: | 9.5% per year, payable monthly if each asset’s closing level is greater than coupon barrier level on the observation date for that month
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| Price: | Par
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| Payout at maturity: | Par unless the final level of either asset 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 asset
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| Call: | At par plus contingent coupon if assets close above initial levels on any observation date beginning Jan. 19, 2021
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| Initial levels: | 1,613.628 for Russell, 11,634.35 for Nasdaq
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| Coupon barrier levels: | 1,129.54 for Russell, 8,144.05 for Nasdaq, 70% of initial levels
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| Trigger levels: | 1,048.858 for Russell, 7,562.33 for Nasdaq, 65% of initial levels
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| Pricing date: | Oct. 19
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| Settlement date: | Oct. 22
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 1.5%
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| Cusip: | 06368E2M3
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