Published on 6/21/2021 in the Prospect News Structured Products Daily.
New Issue: BMO sells $4.1 million autocallable barrier notes with contingent coupon on indexes
By William Gullotti
Buffalo, N.Y., June 21 – Bank of Montreal priced $4.1 million of autocallable barrier notes with contingent coupons due June 19, 2028 linked to the Nasdaq-100 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly coupon equal to 7% per year if each index’s closing level is at least 70% of its initial level on the corresponding observation date.
The notes will be automatically redeemed at par plus the contingent coupon if each index closes above its initial level on any quarterly observation date beginning on Dec. 15.
If the notes are not called, the payout at maturity will be par unless any index finishes below its 60% 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 index.
BMO Capital Markets Corp. is the agent.
| Issuer: | Bank of Montreal
|
| Issue: | Autocallable barrier notes with contingent coupons
|
| Underlying indexes: | Nasdaq-100 index, Russell 2000 index
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| Amount: | $4,099,000
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| Maturity: | June 19, 2028
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| Coupon: | 7% per year, payable quarterly if each index’s closing level is at or above its coupon barrier level on the corresponding observation date
|
| Price: | Par
|
| Payout at maturity: | Par unless any index finishes below its trigger 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 quarterly observation date beginning on Dec. 15
|
| Initial levels: | 14,030.41 for Nasdaq, 2,320.072 for Russell
|
| Coupon barrier levels: | 9,821.29 for Nasdaq, 1,624.05 for Russell; 70% of initial levels
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| Trigger levels: | 8,418.25 for Nasdaq, 1,392.043 for Russell; 60% of initial levels
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| Pricing date: | June 15
|
| Settlement date: | June 18
|
| Agent: | BMO Capital Markets Corp.
|
| Fees: | 1.22%
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| Cusip: | 06368ENM0
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