Published on 5/27/2021 in the Prospect News Structured Products Daily.
New Issue: BMO sells $4 million autocallable barrier notes with contingent coupon on indexes, ETF
By Wendy Van Sickle
Columbus, Ohio, May 27 – Bank of Montreal priced $4 million of autocallable barrier notes with contingent coupons due May 9, 2023 linked to the iShares MSCI EAFE ETF, the Nasdaq-100 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Every quarter, the notes will pay a coupon equal to 10.5% per year if each asset’s closing level is at least 70% of its 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.
If the notes are not called, the payout at maturity will be par unless any asset finishes below its 70% trigger level, in which case investors will lose 1% for each 1% decline based on the final level 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
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| Underlying assets: | iShares MSCI EAFE ETF, Nasdaq 100 index and Russell 2000 index
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| Amount: | $4 million
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| Maturity: | May 9, 2023
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| Coupon: | 10.5% per year, payable quarterly if each asset’s closing level is at or above its coupon barrier level on the observation date for that quarter
|
| Price: | Par
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| Payout at maturity: | Par unless any asset finishes below its 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 assets close above initial levels on any quarterly observation date
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| Initial levels: | $77.80 for ETF, 13,544.67 for Nasdaq, 2,248.286 for Russell
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| Coupon barrier levels: | $54.46 for ETF, 9,481.27 for Nasdaq, 1,573.8 for Russell, 70% of initial levels
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| Trigger levels: | $54.46 for ETF, 9,481.27 for Nasdaq, 1,573.8 for Russell, 70% of initial levels
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| Pricing date: | May 4
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| Settlement date: | May 7
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 0%
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| Cusip: | 06368ELN0
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