Published on 1/6/2022 in the Prospect News Structured Products Daily.
New Issue: BMO sells $1.88 million callable barrier notes with contingent coupon on indexes
By Kiku Steinfeld
Chicago, Jan. 6 – Bank of Montreal priced $1.88 million of callable barrier notes with contingent coupons due Nov. 17, 2026 linked to the Nasdaq-100 index, the Euro Stoxx 50 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 8.6% per year if each underlier’s closing level is at least 70% of its initial level on the corresponding observation date.
The notes will be callable at par on any quarterly observation date.
Unless the worst performer finishes below its 60% barrier level, the payout at maturity will be par. Otherwise, investors will lose 1% for each 1% decline of the worst performer.
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 assets: | Nasdaq-100 index, Euro Stoxx 50 index, Russell 2000 index
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| Amount: | $1,881,000
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| Maturity: | Nov. 17, 2026
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| Coupon: | 8.6% per year, payable quarterly if each underlier’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 the worst performer finishes below its barrier level, in which case investors will lose 1% for each 1% decline of worst performer
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| Call option: | At par on any quarterly observation date
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| Initial levels: | 16,199.89 for Nasdaq, 4,370.33 for Stoxx, 2,411.776 for Russell
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| Coupon barrier levels: | 11,339.92 for Nasdaq, 3,059.23 for Stoxx, 1,688.243 for Russell; 70% of initial levels
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| Barrier levels: | 9,719.93 for Nasdaq, 2,622.20 for Stoxx, 1,447.066 for Russell; 60% of initial levels
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| Pricing date: | Nov. 12
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| Settlement date: | Nov. 17
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 0.25%
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| Cusip: | 06368G3E5
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