Published on 3/19/2021 in the Prospect News Structured Products Daily.
New Issue: BMO sells $1.39 million autocallable barrier notes with contingent coupon on indexes
By Wendy Van Sickle
Columbus, Ohio, March 19 – Bank of Montreal priced $1.39 million of autocallable barrier notes with contingent coupons due Feb. 27, 2026 linked to the least performing of the Russell 2000 index, the S&P 500 index and the Dow Jones industrial average, 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 60% of the initial level on the observation date for that quarter.
The notes will be automatically redeemed at par plus the contingent coupon if each asset closes above its initial level on any quarterly 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 60% 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
|
| Issue: | Autocallable barrier notes with contingent coupons
|
| Underlying assets: | Russell 2000 index, S&P 500 index and Dow Jones industrial average
|
| Amount: | $1,389,000
|
| Maturity: | Feb. 27, 2026
|
| Coupon: | 6% per year, payable quarterly if each asset’s closing level is above the coupon barrier on the observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless the final level of any asset is less than trigger level, in which case investors will lose 1% for each 1% decline from the initial level of the least performing asset
|
| Call: | At par plus contingent coupon if indexes close at or above initial levels on any quarterly observation date after six months
|
| Initial levels: | 2,284.31 for Russell, 3,925.43 for S&P, 31,961.86 for Dow
|
| Coupon barrier levels: | 1,484.848 for Russell, 2,355.26 for S&P, 19,177.12 for Dow, 60% of initial levels
|
| Trigger levels: | 1,484.848 for Russell, 2,355.26 for S&P, 19,177.12 for Dow, 60% of initial levels
|
| Pricing date: | Feb. 24
|
| Settlement date: | Feb. 26
|
| Agent: | BMO Capital Markets
|
| Fees: | 3%
|
| Cusip: | 06368EFC1
|
|
|
© 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.
