Published on 6/26/2020 in the Prospect News Structured Products Daily.
New Issue: BMO sells $10.05 million autocallable barrier notes with contingent coupon on S&P, Nasdaq
By Wendy Van Sickle
Columbus, Ohio, June 26 – Bank of Montreal priced $10.05 million of autocallable barrier notes with contingent coupons due Dec. 27, 2021 linked to the S&P 500 index and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
Every month, the notes will pay a coupon equal to 12.25% per year if each asset’s closing level is at least 70% of the initial level on the observation date for that month.
The notes will be automatically redeemed at par plus the contingent coupon if each index closes above its initial level on any observation date beginning in December.
If the notes are not called, the payout at maturity will be par unless the final level of either asset is less than 70% of the initial level, in which case investors will lose 1% for each 1% decline from the initial level of the least performing asset.
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 assets: | S&P 500 index and Nasdaq-100 index
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Amount: | $10,054,000
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Maturity: | Dec. 27, 2021
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Coupon: | 12.25% per year, payable monthly if each asset’s closing level is at least 70% of the initial level on the observation date for that month
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Price: | Par
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Payout at maturity: | Par unless the final level of either asset is less than 70% of the initial level, in which case investors will lose 1% for each 1% decline from the initial level of the least performing asset
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Call: | At par plus contingent coupon if assets close at or above initial levels on any observation date beginning in December
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Initial levels: | 3,131.29 for S&P, 10,209.82 for Nasdaq
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Coupon barrier levels: | 2,191.9 for S&P, 7,146.874 for Nasdaq, 70% of initial levels
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Trigger levels: | 2,191.9 for S&P, 7,146.874 for Nasdaq, 70% of initial levels
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Pricing date: | June 23
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Settlement date: | June 26
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Agent: | BMO Capital Markets Corp.
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Fees: | 0.75%
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Cusip: | 06367WQ97
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