Published on 1/24/2021 in the Prospect News Structured Products Daily.
New Issue: BMO sells $2.5 million autocallable barrier notes with step-up call on indexes
By Taylor Fox
New York, Jan. 25 – Bank of Montreal priced $2.5 million of 0% autocallable barrier notes with step-up call amount due Dec. 31, 2025 linked to the S&P 500 index, the Dow Jones industrial average and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be automatically redeemed at par plus an annualized call premium of 7% if each index closes above its initial level on any quarterly observation date beginning on June 25, 2021.
The call premium for the maturity date is 35%.
If the notes are not called, the payout at maturity will be par unless the final level of any index 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 index.
BMO Capital Markets Corp. is the agent.
Issuer: | Bank of Montreal
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Issue: | Autocallable barrier notes with step-up call amount
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Underlying indexes: | S&P 500 index, Dow Jones industrial average and Russell 2000 index
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Amount: | $2,502,000
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Maturity: | Dec. 31, 2025
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | If not called, par unless the final level of any index is less than 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: | At par plus 7% annualized premium if all indexes finish above their initial levels on any quarterly observation date beginning June 25, 2021; includes maturity date
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Initial levels: | 3,690.01 for S&P, 30,129.83 for Dow, 2,007.104 for Russell
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Trigger levels: | 2,398.51 for S&P, 19,584.39 for Dow, 1,304.618 for Russell; 65% of initial levels
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Pricing date: | Dec. 23
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Settlement date: | Dec. 29
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Agent: | BMO Capital Markets Corp.
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Fees: | 3.75%
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Cusip: | 06368E6M9
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