Published on 3/23/2022 in the Prospect News Structured Products Daily.
New Issue: BMO sells $3.54 million callable barrier notes with memory coupon on three indexes
By Wendy Van Sickle
Columbus, Ohio, March 23 – Bank of Montreal priced $3.54 million of callable barrier notes with memory coupons due March 23, 2027 linked to the Russell 2000 index, the S&P 500 index and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a monthly coupon equal to 8% per year if each index’s closing level is at least 80% of its initial level on the relevant observation date, in which case any previously unpaid coupon will be paid.
The notes will be callable at par on any monthly observation date after one year.
If the notes are not called, the payout at maturity will be par if each index finishes at or above its 50% 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
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| Issue: | Callable barrier notes with memory coupons
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| Underlying indexes: | Russell 2000 index, S&P 500 index, Nasdaq-100 index
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| Amount: | $3,543,000
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| Maturity: | March 23, 2027
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| Coupon: | 8% per year, payable monthly if each index’s closing level is at or above its coupon barrier level on the relevant observation date, in which case any previously unpaid coupon will be paid
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| Price: | Par
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| Payout at maturity: | If all indexes finish above trigger level, par; otherwise, lose 1% for every 1% decline of the worst performer from its initial level
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| Call option: | At par on any monthly observation date after one year
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| Initial levels: | 2,086.143 for Russell, 4,463.12 for S&P, 14,420.08for Nasdaq
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| Coupon barrier levels: | 1,668.914 for Russell, 3,570.5 for S&P, 11,536.06 for Nasdaq; 80% of initial levels
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| Trigger levels: | 1,043.072 for Russell, 2,231.56 for S&P, 7,210.04 for Nasdaq; 50% of initial levels
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| Pricing date: | March 18
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| Settlement date: | March 23
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 0.25%
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| Cusip: | 06368GMK0
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