Published on 3/3/2023 in the Prospect News Structured Products Daily.
New Issue: BMO sells $421,000 callable barrier notes with contingent coupons on indexes
Chicago, March 3 – Bank of Montreal priced $421,000 of callable barrier notes with contingent coupons due May 19, 2025 linked to the least performing of the Nasdaq-100 index, 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 11% 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 at par on any monthly observation date after three months.
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: | $421,000
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| Maturity: | May 19, 2025
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| Coupon: | 11% 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 after three months
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| Initial levels: | 4,023.89 for S&P, 1,792.666 for Russell, 12,387.40 for Nasdaq
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| Coupon barrier levels: | 2,816.72 for S&P, 1,254.866 for Russell, 8,671.18 for Nasdaq; 70% of initial levels
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| Trigger levels: | 2,414.33 for S&P, 1,075.60 for Russell, 7,432.44 for Nasdaq; 60% of initial levels
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| Pricing date: | May 13, 2022
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| Settlement date: | May 18, 2022
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 1.75%
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| Cusip: | 06368GS40
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