Published on 11/30/2021 in the Prospect News Structured Products Daily.
New Issue: BMO sells $5.26 million callable barrier notes with contingent coupons on two indexes
By William Gullotti
Buffalo, N.Y., Nov. 30 – Bank of Montreal priced $5.26 million of callable barrier notes with contingent coupons due May 31, 2023 linked to the S&P 500 index 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 7.9% 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 callable at par plus any contingent coupon otherwise due on any monthly observation date.
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 65% trigger level. 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
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| Underlying indexes: | S&P 500 index, Russell 2000 index
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| Amount: | $5,255,000
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| Maturity: | May 31, 2023
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| Coupon: | 7.9% 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 trigger level; 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
|
| Initial levels: | 4,690.7 for S&P, 2,327.855 for Russell
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| Coupon barrier levels: | 3,048.96 for S&P, 1,513.106 for Russell; 65% of initial levels
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| Trigger levels: | 3,048.96 for S&P, 1,513.106 for Russell; 65% of initial levels
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| Pricing date: | Nov. 23
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| Settlement date: | Nov. 29
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 0.5%
|
| Cusip: | 06368G6Q5
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