Published on 11/30/2021 in the Prospect News Structured Products Daily.
New Issue: BMO sells $1.69 million callable barrier notes with contingent coupons on three indexes
By William Gullotti
Buffalo, N.Y., Nov. 30 – Bank of Montreal priced $1.69 million of callable barrier notes with contingent coupons due Nov. 28, 2025 linked to the S&P 500 index, the Dow Jones industrial average 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 6.75% 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 callable at par plus any contingent coupon otherwise due on any monthly 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 its 70% coupon barrier.
If the worst performer finishes below its coupon barrier but at or above the 60% trigger level, the payout at maturity will be par. Otherwise, investors will lose 1% for each 1% decline of the worst performer from its initial level.
BMO Capital Markets Corp. is the agent.
| Issuer: | Bank of Montreal
|
| Issue: | Callable barrier notes with contingent coupons
|
| Underlying indexes: | S&P 500 index, Dow Jones industrial average, Russell 2000 index
|
| Amount: | $1.69 million
|
| Maturity: | Nov. 28, 2025
|
| Coupon: | 6.75% per year, payable monthly if each index’s closing level is at or above its coupon barrier level on the relevant observation date
|
| Price: | Par
|
| Payout at maturity: | Par plus the final coupon if all indexes finish at or above coupon barriers; if worst performer finishes below its coupon barrier but at or above trigger level, par; otherwise, investors will lose 1% for each 1% decline of the worst performer from its initial level
|
| Call: | In whole, at the issuer’s option, at par plus any coupon due on any monthly observation date after six months
|
| Initial levels: | 4,690.7 for S&P, 35,813.8 for Dow, 2,327.855 for Russell
|
| Coupon barrier levels: | 3,283.49 for S&P, 25,069.66 for Dow, 1,629.498 for Russell; 70% of initial levels
|
| Trigger levels: | 2,814.42 for S&P, 21,488.28 for Dow, 1,396.713 for Russell; 60% of initial levels
|
| Pricing date: | Nov. 23
|
| Settlement date: | Nov. 29
|
| Agent: | BMO Capital Markets Corp.
|
| Fees: | 0.75%
|
| Cusip: | 06368G6P7
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
