Published on 7/17/2020 in the Prospect News Structured Products Daily.
New Issue: BMO sells $1.66 million autocallable barrier notes with contingent coupon on index, ETF
By Sarah Lizee
Olympia, Wash., July 17 – Bank of Montreal priced $1.66 million of autocallable barrier notes with contingent coupons due July 10, 2030 linked to the SPDR Dow Jones industrial average ETF and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Every quarter, the notes will pay a coupon equal to 9% per year if each asset’s closing level is at least 70% of the initial level on the observation date for that quarter.
The notes will be automatically redeemed at par plus the contingent coupon if each index closes above its initial level on any observation date beginning in October.
If the notes are not called, the payout at maturity will be par unless the final level of either asset is less than 60% of the initial level, in which case investors will lose 1% for each 1% decline from the initial level of the least performing asset.
BMO Capital Markets Corp. is the agent.
Issuer: | Bank of Montreal
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Issue: | Autocallable barrier notes with contingent coupons
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Underlying assets: | SPDR Dow Jones industrial average ETF and Russell 2000 index
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Amount: | $1.66 million
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Maturity: | July 10, 2030
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Coupon: | 9% per year, payable quarterly if each asset’s closing level is at or above coupon barrier level on the observation date for that quarter
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Price: | Par
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Payout at maturity: | Par unless the final level of either asset is less than trigger level, in which case investors will lose 1% for each 1% decline from the initial level of the least performing asset
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Call: | At par plus contingent coupon if assets close at or above initial levels on any observation date beginning in October
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Initial levels: | $268.91 for ETF, 1,478.27 for Russell
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Coupon barrier levels: | $188.24 for ETF, 1,034.789 for Russell, 70% of initial levels
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Trigger levels: | $161.35 for ETF, 886.962 for Russell, 60% of initial levels
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Pricing date: | July 15
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Settlement date: | July 20
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Agent: | BMO Capital Markets Corp.
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Fees: | 2.84%
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Cusip: | 06367WV42
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