Published on 9/25/2021 in the Prospect News Structured Products Daily.
New Issue: BMO sells $500,000 callable barrier notes with contingent coupon on Russell, Stoxx Banks
By Kiku Steinfeld
Chicago, Sept. 27 – Bank of Montreal priced $500,000 of callable barrier notes with contingent coupons due Sept. 21, 2026 linked to the least performing of the Euro Stoxx Banks index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Every month, the notes will pay a coupon equal to 7.5% per year if each index’s closing level is at least 70% of its initial level on the observation date for that month.
The notes will be callable at par on any monthly observation date after three months.
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
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| Issue: | Callable barrier notes with contingent coupons
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| Underlying indexes: | Euro Stoxx Banks index and Russell 2000 index
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| Amount: | $500,000
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| Maturity: | Sept. 21, 2026
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| Coupon: | 7.5% per year, payable monthly if each index’s closing level is at or above its coupon barrier level on the observation date for that month
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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 monthly observation date after three months
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| Initial levels: | 96.55 for Stoxx, 2,234.448 for Russell
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| Coupon barrier levels: | 67.59 for Stoxx, 1,564.114 for Russell; 70% of initial levels
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| Trigger levels: | 57.93 for S&P, 1,340.669 for Russell; 60% of initial levels
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| Pricing date: | Sept. 15
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| Settlement date: | Sept. 20
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 3.25%
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| Cusip: | 06368EWG3
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