Published on 10/24/2022 in the Prospect News Structured Products Daily.
New Issue: BMO sells $1.29 million callable barrier notes with contingent coupon on indexes, ETF
Chicago, Oct. 24 – Bank of Montreal priced $1.29 million of callable barrier notes with contingent coupons due May 24, 2023 linked to the least performing of the VanEck Vectors Gold Miners ETF, the Nasdaq-100 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a monthly coupon equal to 16.1% per year if each underlier’s closing level is at least 65% of its initial level on the relevant observation date.
The notes will be callable on any monthly observation date after six months.
If the notes are not called, the payout at maturity will be par plus the final coupon if all underliers finish at or above its 65% trigger level every day during the life of the notes. Investors would alternatively receive par if all three assets finish above their initial levels. 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
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| Issue: | Callable barrier notes with contingent coupons
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| Underlying assets: | VanEck Vectors Gold Miners ETF, the Nasdaq-100 index and the S&P 500 index
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| Amount: | $1,286,000
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| Maturity: | May 24, 2023
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| Coupon: | 16.1% per year, payable monthly if each underlier’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 if all three assets close above 65% trigger level every day during life of the notes; par if all three indexes closes above initial levels; otherwise, investors will lose 1% for each 1% decline of the worst performer from its initial level
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| Call option: | At par on any monthly observation date after six months
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| Initial levels: | $34.50 for ETF, 14,009.54 for Nasdaq, 4,348.87 for S&P
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| Coupon barrier levels: | $22.43 for ETF, 9,106.20 for Nasdaq, 2,826.77 for S&P; 65% of initial levels
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| Trigger levels: | $22.43 for ETF, 9,106.20 for Nasdaq, 2,826.77 for S&P; 65% of initial levels
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| Pricing date: | Feb. 18
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| Settlement date: | Feb. 24
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 0.25%
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| Cusip: | 06368GKJ5
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