By William Gullotti
Buffalo, N.Y., July 5 – Bank of Montreal priced $3 million of callable barrier notes with contingent coupons due July 5, 2024 linked to the performance of the SPDR S&P 500 ETF Trust, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon equal to 10.4% per year if the ETF’s closing level is at least 70% of its initial level on the relevant observation date. Previously unpaid coupons, if any, will be automatically included whenever a coupon is paid.
The notes will be callable at par plus any coupon otherwise due on any quarterly observation date.
If the notes are not called and the ETF finishes at or above its 70% trigger level, the payout at maturity will be par plus all unpaid coupons.
Otherwise, investors will lose 1% for each 1% of ETF 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 fund: | SPDR S&P 500 ETF Trust
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| Amount: | $3 million
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| Maturity: | July 5, 2024
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| Coupon: | 10.4% per year, payable quarterly if the ETF’s closing level is at or above its coupon barrier level on the relevant observation date; coupon payment events will automatically include any previously unpaid coupons
|
| Price: | Par
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| Payout at maturity: | Par plus all unpaid coupons unless the ETF finishes below its trigger level, in which case investors will lose 1% for each 1% of ETF decline from its initial level
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| Call option: | At par plus any coupon due on any quarterly observation date
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| Initial level: | $380.34
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| Coupon barrier level: | $266.24; 70% of initial levels
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| Trigger level: | $266.24; 70% of initial levels
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| Pricing date: | June 29
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| Settlement date: | July 5
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 0.5%
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| Cusip: | 06368GWS2
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