Published on 8/6/2021 in the Prospect News Structured Products Daily.
New Issue: BMO sells $160,000 callable barrier notes with contingent coupons on indexes
By Wendy Van Sickle
Columbus, Ohio, Aug. 6 – Bank of Montreal priced $160,000 of callable barrier notes with contingent coupons due June 10, 2025 linked to the least performing of the S&P 500 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 6% per year if each index’s closing level is at least 65% of its initial level on the observation date for that quarter.
The notes will be callable at par on any quarterly observation date after one year.
If the notes are not called, the payout at maturity will be par unless any index finishes below its 65% 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
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Issue: | Callable barrier notes with contingent coupons
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Underlying indexes: | S&P 500 index and Russell 2000 index
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Amount: | $160,000
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Maturity: | June 10, 2025
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Coupon: | 6% per year, payable quarterly if each index’s closing level is at or above its coupon barrier level on the observation date for that quarter
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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
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Call option: | At par on any quarterly observation date after one year
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Initial levels: | 4,226.52 for S&P, 2,319.177 for Russell
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Coupon barrier levels: | 2,747.24 for S&P, 1,507.465 for Russell; 65% of initial levels
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Trigger levels: | 2,747.24 for S&P, 1,507.465 for Russell; 65% of initial levels
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Pricing date: | June 7
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Settlement date: | June 10
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Agent: | BMO Capital Markets Corp.
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Fees: | 0%
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Cusip: | 06368ENY4
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