Published on 9/25/2021 in the Prospect News Structured Products Daily.
New Issue: BMO sells $1.6 million callable buffer notes with contingent coupon on indexes
By Kiku Steinfeld
Chicago, Sept. 27 – Bank of Montreal priced $1.6 million of callable buffer notes with contingent coupons due July 28, 2026 linked to the Euro Stoxx 50 index, 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 6% per year if each asset’s closing level is at least 70% of its initial level on the corresponding observation date.
The notes will be callable on any quarterly observation date after one year.
If the notes are not called, the payout at maturity will be par unless any asset finishes below its 70% buffer level, in which case investors will lose 1.4286% for each 1% decline of the least performing asset beyond 30%.
BMO Capital Markets Corp. is the agent.
| Issuer: | Bank of Montreal
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| Issue: | Callable buffer notes with contingent coupons
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| Underlying assets: | Euro Stoxx 50 index, Nasdaq 100 index, Russell 2000 index
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| Amount: | $1,598,000
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| Maturity: | July 28, 2026
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| Coupon: | 6% per year, payable quarterly if each asset’s closing level is at or above its coupon barrier level on the corresponding observation date
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| Price: | Par
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| Payout at maturity: | Par unless any asset finishes below its buffer level, in which case investors will lose 1.4286% for each 1% decline of least performing asset beyond 30%
|
| Call option: | At par on any quarterly observation date after one year
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| Initial levels: | 4,109.10 for Stoxx, 15,111.79 for Nasdaq, 2,209.65 for Russell
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| Coupon barrier levels: | 2,876.37 for Stoxx, 10,578.25 for Nasdaq, 1,546.754 for Russell; 70% of initial levels
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| Buffer levels: | 2,876.37 for Stoxx, 10,578.25 for Nasdaq, 1,546.754 for Russell; 70% of initial levels
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| Pricing date: | July 23
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| Settlement date: | July 28
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 0.25%
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| Cusip: | 06368ETK8
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