Published on 4/27/2023 in the Prospect News Structured Products Daily.
New Issue: BMO sells $743,000 callable barrier notes with contingent coupon on Russell, S&P
Chicago, April 27 – Bank of Montreal priced $743,000 of callable barrier notes with contingent coupons due May 30, 2025 linked to the least performing of 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 9% per year if each index’s closing level is at least 60% of its initial level on the relevant observation date.
The notes will be callable on any monthly observation date starting 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
|
| 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: | $743,000
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| Maturity: | May 30, 2025
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| Coupon: | 9% per year, payable monthly if each index’s closing level is at or above its coupon barrier level on the relevant observation date
|
| 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
|
| Call option: | At par plus any coupon due on any monthly observation date starting after three months
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| Initial levels: | 4,057.84 for S&P, 1,838.238 for Russell
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| Coupon barrier levels: | 2,434.70 for S&P, 1,102.943 for Russell; 60% of initial levels
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| Trigger levels: | 2,434.70 for S&P, 1,102.943 for Russell; 60% of initial levels
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| Pricing date: | May 26, 2022
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| Settlement date: | May 31, 2022
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 1.59%
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| Cusip: | 06368GTJ6
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