Published on 6/28/2021 in the Prospect News Structured Products Daily.
New Issue: BMO sells $1.11 million autocallable barrier notes with contingent coupon on indexes
By William Gullotti
Buffalo, N.Y., June 28 – Bank of Montreal priced $1.11 million of autocallable barrier notes with contingent coupons due June 30, 2025 linked to the Euro Stoxx Banks index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a monthly coupon equal to 6.15% 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 monthly observation date after one year.
If the notes are not called, the payout at maturity will be par unless any index 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 index.
BMO Capital Markets Corp. is the agent.
| Issuer: | Bank of Montreal
|
| Issue: | Autocallable barrier notes with contingent coupons
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| Underlying indexes: | Euro Stoxx Banks index, Russell 2000 index
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| Amount: | $1,110,000
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| Maturity: | June 30, 2025
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| Coupon: | 6.15% per year, payable monthly if each index’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 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 monthly observation date after one year
|
| Initial levels: | 94.16 for Stoxx Banks, 2,303.469 for Russell
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| Coupon barrier levels: | 65.91 for Stoxx Banks, 1,612.428 for Russell; 70% of initial levels
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| Trigger levels: | 65.91 for Stoxx Banks, 1,612.428 for Russell; 70% of initial levels
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| Pricing date: | June 23
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| Settlement date: | June 28
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| Agent: | BMO Capital Markets Corp.
|
| Fees: | 3.85%
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| Cusip: | 06368EPR7
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