Published on 1/7/2021 in the Prospect News Structured Products Daily.
New Issue: BMO sells $4.05 million autocallable barrier notes with contingent coupons on indexes
By Cady Vishniac
Detroit, Jan. 7 – Bank of Montreal priced $4.05 million of autocallable barrier notes with contingent coupons due Dec. 31, 2025 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.
Every month, the notes will pay a coupon equal to 7.5% per year if each index’s level is greater than 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 monthly observation date beginning on June 25, 2021.
If the notes are not called and all indexes are at or above 70% of their initial levels, the payout at maturity will be par plus any coupon due. If the notes are not called and any index has fallen below 70% of its initial level, 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
|
| Issue: | Autocallable barrier notes with contingent coupon
|
| Underlying indexes: | S&P 500 index, Nasdaq-100 index and Russell 2000 index
|
| Amount: | $4,048,000
|
| Maturity: | Dec. 31, 2025
|
| Coupon: | 7.5% per year, payable monthly if each index’s level is greater than 70% of the initial level on the observation date for that month
|
| Price: | Par
|
| Payout at maturity: | Par plus any coupon due unless the final level of any index is less than 70% 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 above initial levels on any monthly observation date beginning on June 25, 2021
|
| Initial levels: | 3,735.36 for S&P, 12,838.86 for Nasdaq and 1,996.25 for Russell
|
| Coupon barrier/trigger levels: | 2,614.75 for S&P, 8,987.2 for Nasdaq and 1,397.375 for Russell, 70% of initial levels
|
| Pricing date: | Dec. 28
|
| Settlement date: | Dec. 31
|
| Agent: | BMO Capital Markets Corp.
|
| Fees: | 3.63%
|
| Cusip: | 06368EBE1
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
