Published on 10/3/2022 in the Prospect News Structured Products Daily.
New Issue: BMO sells $500,000 callable barrier notes with contingent coupon on indexes
By Kiku Steinfeld
Chicago, Oct. 3 – Bank of Montreal priced $500,000 of callable barrier notes with contingent coupons due Feb. 18, 2025 linked to the S&P 500 index, 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 monthly coupon equal to 9.5% 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 Aug. 15, 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, Nasdaq-100 index
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| Amount: | $500,000
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| Maturity: | Feb. 18, 2025
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| Coupon: | 9.5% 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 Aug. 15, 2022
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| Initial levels: | 4,401.67 for S&P, 2,020.787 for Russell, 14,268.59 for Nasdaq
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| Coupon barrier levels: | 3,081.17 for S&P, 1,414.551 for Russell, 9,988.01 for Nasdaq; 70% of initial levels
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| Trigger levels: | 2,641.00 for S&P, 1,212.472 for Russell, 8,561.15 for Nasdaq; 60% of initial levels
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| Pricing date: | Feb. 14
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| Settlement date: | Feb. 17
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 1.1%
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| Cusip: | 06368GJA6
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