By Wendy Van Sickle
Columbus, Ohio, Oct. 21 – Bank of Montreal priced $4 million of autocallable barrier notes with contingent coupon due Oct. 20, 2022 linked to the least performing of the common stocks of JP Morgan Chase & Co. and Wells Fargo & Co., according to a 424B2 filing with the Securities and Exchange Commission.
Every month, the notes will pay a coupon equal to 18.5% per year if the stock closes above its coupon barrier level, 70% of its initial price, on the observation date for that month.
The notes will be automatically redeemed at par plus the contingent coupon if the least performing stock closes above its initial price on any monthly observation date.
If the notes are not called, the payout at maturity will be par unless the final share price of the least performing stock is less than the 70% barrier price, in which case investors will lose 1% for each 1% decline of the least performing stock from its initial price.
BMO Capital Markets Corp. is the agent.
| Issuer: | Bank of Montreal
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| Issue: | Autocallable barrier notes with contingent coupon
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| Underlying stock: | JP Morgan Chase & Co. and Wells Fargo & Co.
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| Amount: | $4 million
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| Maturity: | Oct. 20, 2022
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| Coupon: | 18.5% per year, payable monthly if both stocks close above coupon barrier level on related observation date
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| Price: | Par
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| Payout at maturity: | Par unless final share price of least performing stock is less than trigger price, in which case investors will lose 1% for each 1% decline of that stock from its initial price
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| Call: | At par plus contingent coupon if each stock closes above initial price on any observation date
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| Initial price: | $101.72 for JPM, $22.95 for Wells
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| Coupon barrier level: | $71.20 for JPM, $16.07 for Wells, 70% of initial prices
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| Trigger price: | $71.20 for JPM, $16.07 for Wells, 70% of initial prices
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| Pricing date: | Oct. 15
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| Settlement date: | Oct. 20
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 0.4%
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| Cusip: | 06368E2N1
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