Published on 4/4/2022 in the Prospect News Structured Products Daily.
New Issue: BMO prices $2.06 million autocallable barrier notes on Nasdaq, Russell
By William Gullotti
Buffalo, N.Y., April 4 – Bank of Montreal priced $2.06 million of autocallable barrier notes with contingent coupons due Feb. 5, 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.
The notes pay a monthly contingent coupon at an annual rate of 6% if each index finishes above 80% of its initial level on the related observation date.
The notes will be automatically called at par if the least performing index closes at or above its initial level on any monthly observation date starting Feb. 2, 2022.
If the notes are not called and the least performing index return is above 80% of its initial level, the payout at maturity will be par. Otherwise, investors will lose be fully exposed to the losses of the worst performer.
BMO Capital Markets Corp. is the underwriter.
| Issuer: | Bank of Montreal
|
| Issue: | Autocallable barrier notes with contingent coupons
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| Underlying indexes: | Nasdaq-100 index, Russell 2000 index
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| Amount: | $2,063,000
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| Maturity: | Feb. 5, 2026
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| Coupon: | 6% annual rate, payable monthly if each index finishes above its coupon barrier level on related observation date
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| Price: | Par
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| Payout at maturity: | If the notes are not called and each index finishes above 80% of its initial level, par; otherwise, full exposure to losses of worst performer
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| Call: | Automatically at par if both indexes close at or above their initial levels on any monthly observation date starting Feb. 2, 2022
|
| Initial levels: | 2,266.449 for Russell, 13,860.76 for Nasdaq
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| Coupon barrier levels: | 1,813.159 for Russell, 11,088.61 for Nasdaq; 80% of initial levels
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| Trigger levels: | 1,813.159 for Russell, 11,088.61 for Nasdaq; 80% of initial levels
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| Pricing date: | April 30, 2021
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| Settlement date: | May 5, 2021
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 3.85%
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| Cusip: | 06368EKK7
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