New Issue: BMO sells $920,000 autocallable barrier notes on S&P 500

By Kiku Steinfeld

Chicago, May 11 – Bank of Montreal priced $920,000 autocallable barrier notes due Jan. 5, 2026 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be automatically redeemed at par plus 7.5% per year if the index closes at or above its corresponding call level on any annual observation date starting Jan. 2, 2024. The call level will start at 90% of the index’s initial level, decreasing by 10% each year to 70% of the index’s initial level on Dec. 30, 2025.

If the notes are not called and the index finishes at or above 60% of its initial level, the payout will be par. Otherwise, investors will lose 1% for each 1% decline of the index from its initial level.

BMO Capital Markets Corp. is the agent.

Issuer:	Bank of Montreal
Issue:	Autocallable barrier notes
Underlying index:	S&P 500 index
Amount:	$920,000
Maturity:	Jan. 5, 2026
Coupon:	0%
Price:	Par
Payout at maturity:	Par if index finishes at or above trigger level; otherwise, lose 1% for each 1% decline of index from its initial level
Call:	At par plus 7.5% per year if the index closes at or above call level on any annual observation date starting Jan. 2, 2024; call level will start at 90% of the index’s initial level, decreasing by 10% each year to 70% on Dec. 30, 2025
Initial level:	3,839.50
Coupon barrier:	2,303.70; 60% of initial level
Trigger level:	2,303.70; 60% of initial level
Pricing date:	Dec. 30, 2022
Settlement date:	Jan. 5, 2023
Agent:	BMO Capital Markets Corp.
Fees:	2.75%
Cusip:	40441XYK0

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