By Wendy Van Sickle
Columbus, Ohio, Sept. 3 – Bank of Montreal priced $423,000 of autocallable barrier notes with contingent coupons due June 28, 2024 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 quarterly coupon equal to 7.25% per year if each index’s closing level is at least 65% 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 after six months.
If the notes are not called, the payout at maturity will be par plus the final coupon if each index’s final level is greater than or equal to the coupon barrier.
If any index finishes below its coupon barrier, but each finish at or above the 65% trigger level, the payout at maturity will be par. Otherwise, investors will lose 1% for each 1% decline of the least-performing index from its initial level.
BMO Capital Markets Corp. is the agent.
| Issuer: | Bank of Montreal
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| 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: | $423,000
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| Maturity: | June 28, 2024
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| Coupon: | 7.25% per year, payable quarterly if each index’s closing level is at or above its coupon barrier level on the relevant observation date
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| Price: | Par
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| Payout at maturity: | Par plus the final coupon if all indexes finish above coupon barrier; if any index finishes below coupon barrier but all finish above trigger level, par; otherwise, investors will lose 1% for each 1% decline of the least-performing index from its initial level
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| Call: | At par plus contingent coupon if indexes close above initial levels on any quarterly observation date after six months
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| Initial levels: | 96.27 for Euro Stoxx Banks, 2,223.108 for Russell
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| Coupon barrier levels: | 62.58 for Euro Stoxx Banks, 1,667.331 for Russell; 65% of initial levels
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| Trigger levels: | 62.58 for Euro Stoxx Banks, 1,667.331 for Russell; 65% of initial levels
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| Pricing date: | June 25
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| Settlement date: | June 30
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 1.6%
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| Cusip: | 06368ENW8
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