Published on 3/31/2021 in the Prospect News Structured Products Daily.
New Issue: BMO sells $2.36 million autocallable barrier notes linked to indexes, gold miners ETF
By Kiku Steinfeld
Chicago, March 31 – Bank of Montreal priced $2.36 million of autocallable barrier notes with contingent coupons due June 13, 2022 linked to the VanEck Vectors Gold Miners exchange-traded fund, the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Every month, the notes will pay a coupon equal to 14% per year if each asset’s closing level is greater than 65% of its initial level on the observation date for that month.
The notes will be automatically redeemed at par plus the contingent coupon if each asset closes above its initial level on any monthly observation date after six months.
If the notes are not called and each asset finishes at or above 60% of its initial level, the payout at maturity will be par plus the final coupon, if any. If the notes are not called and any asset finishes below 60% of its initial level, 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
|
| Issue: | Autocallable barrier notes with contingent coupon
|
| Underlying asset: | VanEck Vectors Gold Miners ETF, S&P 500 index and Russell 2000 index
|
| Amount: | $2,362,000
|
| Maturity: | June 13, 2022
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| Coupon: | 14% per year, payable monthly if each asset’s closing level is greater than 65% of its initial level on the observation date for that month
|
| Price: | Par
|
| Payout at maturity: | Par plus the final coupon, if any, unless the final level of any asset is less than 60% of its initial level, in which case investors will lose 1% for each 1% decline from the initial level of the least-performing asset
|
| Call: | At par plus contingent coupon if assets close above initial levels on any monthly observation date after six months
|
| Initial levels: | 3,821.35 for S&P, 2,202.985 for Russell, $31.39 for ETF
|
| Coupon barriers: | 2,483.88 for S&P, 1,431.940 for Russell, $20.40 for ETF, 65% of initial levels
|
| Trigger levels: | 2,292.81 for S&P, 1,321.791 for Russell, $18.83 for ETF, 60% of initial levels
|
| Pricing date: | March 8
|
| Settlement date: | March 11
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| Agent: | BMO Capital Markets Corp.
|
| Fees: | 0.25%
|
| Cusip: | 06368EGN6
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