Published on 2/16/2024 in the Prospect News Structured Products Daily.
New Issue: BMO sells $300,000 callable barrier notes with contingent coupons on S&P, Dow, Russell
Chicago, Feb. 16 – Bank of Montreal priced $300,000 of callable barrier notes with contingent coupons due Dec. 17, 2025 linked to the least performing of the Russell 2000 index, the Dow Jones industrial average and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon equal to 7.5% per year if each index’s closing level is at least 70% of its initial level on the relevant observation date.
After three months, the notes will be callable at par plus any coupon otherwise due on any monthly observation date.
If the notes are not called, the payout at maturity will be par plus the final coupon unless any index finishes below its 70% trigger level, in which case investors will lose 1% for each 1% of the laggard index decline 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, Dow Jones industrial average, Russell 2000 index
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| Amount: | $300,000
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| Maturity: | Dec. 17, 2025
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| Coupon: | 7.5% 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 plus final coupon unless any index finishes below its trigger level, in which case investors will lose 1% for each 1% of laggard index decline 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: | 37,711.02 for Dow, 1,955.456 for Russell, 4,780.24 for S&P
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| Coupon barrier levels: | 26,397.71 for Dow, 1,368.819 for Russell, 3,346.17 for S&P; 70% of initial levels
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| Trigger levels: | 26,397.71 for Dow, 1,368.819 for Russell, 3,346.17 for S&P; 70% of initial levels
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| Pricing date: | Jan. 11
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| Settlement date: | Jan. 17
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 1.875%
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| Cusip: | 06375MSA4
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