Published on 2/8/2022 in the Prospect News Structured Products Daily.
New Issue: BMO sells $809,000 autocallable barrier notes with contingent coupon on Nasdaq, Russell
By Kiku Steinfeld
Chicago, Feb. 8 – Bank of Montreal priced $809,000 of autocallable barrier notes with contingent coupons due Feb. 3, 2026 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 7% per year if each index’s closing level is at least 70% of the initial level on the observation date for that month.
The notes will be automatically redeemed at par plus the contingent coupon if each index closes above its initial level on any monthly observation date starting Jan. 31, 2023.
If the notes are not called, the payout at maturity will be par unless any index closes below 70% 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: | Autocallable barrier notes with contingent coupons
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| Underlying indexes: | Nasdaq-100 index and Russell 2000 index
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| Amount: | $809,000
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| Maturity: | Feb. 3, 2026
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| Coupon: | 7% 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: | At par plus contingent coupon if indexes close at or above initial levels on any monthly observation date starting Jan. 31, 2023
|
| Initial levels: | 2,028.453 for Russell, 14,930.05 for Nasdaq
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| Coupon barrier levels: | 1,622.762 for Russell, 11,944.04 for Nasdaq, 70% of initial levels
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| Trigger levels: | 1,622.762 for Russell, 11,944.04 for Nasdaq, 70% of initial levels
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| Pricing date: | Jan. 31
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| Settlement date: | Feb. 3
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 3.85%
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| Cusip: | 06368GGW1
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