Published on 2/5/2021 in the Prospect News Structured Products Daily.
New Issue: BMO sells $278,000 autocallable barrier notes with contingent coupons on S&P, Russell
By Kiku Steinfeld
Chicago, Feb. 5 – Bank of Montreal priced $278,000 of autocallable barrier notes with contingent coupons due Feb. 28, 2022 linked to the S&P 500 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 6% per year if each index’s closing level is at least 75% of the initial level on the observation date for that period.
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 after six months.
If the notes are not called, the payout at maturity will be par unless the final level of any index is less than 75% 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
|
| Issue: | Autocallable barrier notes with contingent coupons
|
| Underlying indexes: | S&P 500 index and Russell 2000 index
|
| Amount: | $278,000
|
| Maturity: | Feb. 28, 2022
|
| Coupon: | 6% per year, payable monthly if each index’s closing level is above coupon barrier level on the observation date for that period
|
| Price: | Par
|
| Payout at maturity: | Par unless the final level of any index is less than 75% 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 at or above initial levels on any monthly observation date after six months
|
| Initial levels: | 2,149.856 for Russell, 3,849.62 for S&P
|
| Coupon barrier levels: | 1,612.392 for Russell, 2,887.22 for S&P; 75% of initial levels
|
| Trigger levels: | 1,612.392 for Russell, 2,887.22 for S&P; 75% of initial levels
|
| Pricing date: | Jan. 26
|
| Settlement date: | Jan. 29
|
| Agent: | BMO Capital Markets Corp.
|
| Fees: | 2.15%
|
| Cusip: | 06368ECZ3
|
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