Published on 7/20/2021 in the Prospect News Structured Products Daily.
New Issue: BMO sells $1.47 million callable barrier notes with contingent coupon on indexes
By Kiku Steinfeld
Chicago, July 20 – Bank of Montreal priced $1.47 million of callable barrier notes with contingent coupons due June 3, 2026 linked to the Euro Stoxx 50 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 quarterly coupon equal to 6% per year if each asset’s closing level is at least 60% of its initial level on the observation date for that period.
The notes will be callable on any quarterly observation date.
If the notes are not called, the payout at maturity will be par unless any asset finishes below its 60% trigger level, in which case investors will lose 1% for each 1% decline based on the final level 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: | Callable barrier notes with contingent coupons
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Underlying assets: | Euro Stoxx 50 index, S&P 500 index, Russell 2000 index
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Amount: | $1,467,000
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Maturity: | June 3, 2026
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Coupon: | 6% per year, payable quarterly if each asset’s closing level is at or above its coupon barrier level on the observation date for that period
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Price: | Par
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Payout at maturity: | Par unless any asset finishes below its trigger 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 option: | At par on any quarterly observation date
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Initial levels: | 4,070.56 for Stoxx, 4,204.11 for S&P, 2,268.972 for Russell
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Coupon barrier levels: | 2,442.34 for Stoxx, 2,522.47 for S&P, 1,361.383 for Russell; 60% of initial levels
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Trigger levels: | 2,442.34 for Stoxx, 2,522.47 for S&P, 1,361.383 for Russell; 60% of initial levels
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Pricing date: | May 28
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Settlement date: | June 3
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Agent: | BMO Capital Markets Corp.
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Fees: | 1.15%
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Cusip: | 06368ENH1
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