Published on 2/24/2023 in the Prospect News Structured Products Daily.
New Issue: BMO sells $1.48 million autocallable barrier notes with contingent coupons on indexes
Chicago, Feb. 24 – Bank of Montreal priced $1.48 million of autocallable barrier notes with contingent coupons due May 10, 2027 linked to the least performing of the Nasdaq-100 index, the Dow Jones industrial average 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 11.5% per year if each index’s closing level is at least 70% of its initial level on the corresponding observation date.
The notes will be automatically redeemed at par plus the contingent coupon if each index closes at or above its initial level on any monthly observation date after six months.
If the notes are not called and each index finishes at or above 70% of its initial level, the payout at maturity will be par plus any final coupon. 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: | Autocallable barrier notes with contingent coupons
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Underlying indexes: | Nasdaq-100 index, Dow Jones industrial average, Russell 2000 index
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Amount: | $1,480,000
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Maturity: | May 10, 2027
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Coupon: | 11.5% 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: | Par if all three indexes close above trigger levels; otherwise, investors will lose 1% for each 1% decline of the worst performer from its initial level
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Call: | At par plus contingent coupon if indexes close at or above initial levels on any monthly observation date after six months
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Initial levels: | 34,061.06 for Dow, 1,949.923 for Russell, 13,535.71 for Nasdaq
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Coupon barrier levels: | 23,842.74 for Dow, 1,364.946 for Russell, 9,475 for Nasdaq; 70% of initial levels
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Trigger levels: | 23,842.74 for Dow, 1,364.946 for Russell, 9,475 for Nasdaq; 70% of initial levels
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Pricing date: | May 4, 2022
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Settlement date: | May 9, 2022
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Agent: | BMO Capital Markets Corp.
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Fees: | 0.75%
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Cusip: | 06368GRZ2
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