Published on 12/20/2021 in the Prospect News Structured Products Daily.
New Issue: BMO sells $802,000 callable barrier notes with contingent coupon on Nasdaq, Russell
By Kiku Steinfeld
Chicago, Dec. 20 – Bank of Montreal priced $802,000 of callable barrier notes with contingent coupons due May 31, 2024 linked to the least performing of the Nasdaq-100 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 6.5% per year if each index’s closing level is at least 80% of the initial level on the observation date for that month.
The notes are callable at par plus the contingent coupon on any monthly observation date after six months.
If the notes are not called, the payout at maturity will be par unless any index closes below 80% of its initial level, in which case investors will lose 1% for each 1% decline from the initial level of the least performing index.
BMO Capital Markets Corp. is the selling agent.
| Issuer: | Bank of Montreal
|
| Issue: | Callable barrier notes with contingent coupons
|
| Underlying indexes: | Nasdaq-100 index and Russell 2000 index
|
| Amount: | $802,000
|
| Maturity: | May 31, 2024
|
| Coupon: | 6.5% per year, payable monthly if each index’s closing level above its coupon barrier on the observation date for that period
|
| Price: | Par
|
| 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 least performing index
|
| Call option: | At par plus contingent on any monthly observation date after six months
|
| Initial levels: | 2,213.979 for Russell, 15,278.52 for Nasdaq
|
| Coupon barrier levels: | 1,771.183 for Russell, 12,222.82 for Nasdaq, 80% of initial levels
|
| Trigger levels: | 1,771.183 for Russell, 12,222.82 for Nasdaq, 80% of initial levels
|
| Pricing date: | Aug. 26
|
| Settlement date: | Aug. 31
|
| Agent: | BMO Capital Markets Corp.
|
| Fees: | 3.35%
|
| Cusip: | 06368EU67
|
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