Published on 3/21/2022 in the Prospect News Structured Products Daily.
New Issue: BMO sells $2.5 million callable barrier notes with contingent coupon on Nasdaq, Russell
By William Gullotti
Buffalo, N.Y., March 21 – Bank of Montreal priced $2.5 million of callable barrier notes with contingent coupons due March 21, 2029 linked to the Nasdaq-100 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon equal to 9.5% per year if each index’s closing level is at least 60% of its initial level on the relevant observation date.
The notes will be callable on any quarterly observation date.
If the notes are not called and each index finishes at or above its 60% trigger level, the payout at maturity will be par plus the final coupon. 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
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| Issue: | Callable barrier notes with contingent coupons
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| Underlying indexes: | Nasdaq-100 index, Russell 2000 index
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| Amount: | $2.5 million
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| Maturity: | March 21, 2029
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| Coupon: | 9.5% per year, payable quarterly if each index’s closing level is at or above its coupon barrier level on the relevant observation date
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| Price: | Par
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| Payout at maturity: | If all indexes finish at or above trigger level, par plus final coupon; otherwise, lose 1% for every 1% decline of the worst performer from its initial level
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| Call option: | At par plus any coupon due on any quarterly observation date
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| Initial levels: | 13,956.79 for Nasdaq, 2,030.72 for Russell
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| Coupon barrier levels: | 8,374.07 for Nasdaq, 1,218.432 for Russell; 60% of initial levels
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| Trigger levels: | 8,374.07 for Nasdaq, 1,218.432 for Russell; 60% of initial levels
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| Pricing date: | March 16
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| Settlement date: | March 21
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 0.5%
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| Cusip: | 06368GN37
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