Published on 8/14/2022 in the Prospect News Structured Products Daily.
New Issue: BMO sells $1.03 million callable barrier notes with contingent coupon on Russell, S&P
By Kiku Steinfeld
Chicago, Aug. 15 – Bank of Montreal priced $1.03 million of callable barrier notes with contingent coupons due Jan. 21, 2025 linked to the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a monthly coupon equal to 7% per year if each index’s closing level is at least 70% of its initial level on the relevant observation date.
The notes will be callable on any monthly observation date starting in April 2022.
If the notes are not called, the payout at maturity will be par if each index finishes at or above its 60% 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 contingent coupons
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| Underlying indexes: | S&P 500 index, Russell 2000 index
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| Amount: | $1,031,000
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| Maturity: | Jan. 21, 2025
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| Coupon: | 7% per year, payable monthly 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 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 plus any coupon due on any monthly observation date starting in April 2022
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| Initial levels: | 4,662.85 for S&P, 2,162.456 for Russell
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| Coupon barrier levels: | 3,264.00 for S&P, 1,513.719 for Russell; 70% of initial levels
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| Trigger levels: | 2,797.71 for S&P, 1,297.474 for Russell; 60% of initial levels
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| Pricing date: | Jan. 14
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| Settlement date: | Jan. 20
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 1.5%
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| Cusip: | 06368GE60
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