By Wendy Van Sickle
Columbus, Ohio, Oct. 11 – Bank of Montreal priced $3.2 million of callable barrier notes with contingent coupons due April 13, 2026 linked to the performance of the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon equal to 8% per year if the index’s closing level is at least 70% of its initial level on the relevant observation date.
The notes will be callable at par plus any coupon otherwise due on any quarterly call observation date after six months.
If the notes are not called and the index finishes at or above its 60% trigger barrier, the payout at maturity will be par plus any final coupon.
Otherwise, investors will lose 1% for each 1% of index decline 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 index: | S&P 500 index
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Amount: | $3,203,000
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Maturity: | April 13, 2026
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Coupon: | 8% per year, payable monthly if the index’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 plus any final coupon if index finishes at or above trigger level; otherwise, lose 1% for each 1% of index decline from initial level
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Call option: | At par plus any coupon due on any quarterly call observation date after six months
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Initial level: | 4,258.19
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Coupon barrier level: | 2,980.73; 70% of initial level
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Trigger level: | 2,554.91; 60% of initial level
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Pricing date: | Oct. 5
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Settlement date: | Oct. 11
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Agent: | BMO Capital Markets Corp.
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Fees: | 0.65%
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Cusip: | 06375MEZ4
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