Published on 2/17/2023 in the Prospect News Structured Products Daily.
New Issue: BMO sells $1.12 million buffer enhanced return notes linked to weighted basket
By William Gullotti
Buffalo, N.Y., Feb. 17 – Bank of Montreal priced $1.12 million of 0% buffer enhanced return notes due Feb. 18, 2025 linked to a weighted basket of indexes and ETFs, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the Invesco S&P 500 High Beta ETF with a 35% weight, the Euro Stoxx 50 index with a 15% weight, the Russell 2000 index with a 20% weight, the Nasdaq-100 index with a 15% weight and the iShares MSCI Emerging Markets ETF with a 15% weight.
The payout at maturity will be par plus 200% of any gain of the basket, subject to a maximum return of par plus 29.5%.
Investors will receive par if the basket falls by up to 10% and will lose 1% for every 1% decline of the basket beyond the 10% buffer.
BMO Capital Markets Corp. is the underwriter.
| Issuer: | Bank of Montreal
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| Issue: | Buffer enhanced return notes
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| Underlying assets: | Invesco S&P 500 High Beta ETF (35% weight), Euro Stoxx 50 index (15% weight), Russell 2000 index (20% weight), iShares MSCI Emerging Markets ETF (15% weight), Nasdaq-100 index (15% weight)
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| Amount: | $1,121,000
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| Maturity: | Feb. 18, 2025
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | Par plus 200% of any basket gain, capped at par plus 29.5%; par if basket falls by up to 10%; otherwise, 1% loss per 1% decline of basket beyond 10%
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| Initial index levels: | $74.52 for High Beta ETF, 4,241.36 for Stoxx, 1,941.143 for Russell, $40.52 for Emerging Markets ETF, 12,502.31 for Nasdaq
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| Buffer level: | 90% of initial level
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| Pricing date: | Feb. 13
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| Settlement date: | Feb. 16
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| Underwriter: | BMO Capital Markets Corp.
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| Fees: | 0.8%
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| Cusip: | 06374VMS2
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