Published on 11/15/2020 in the Prospect News Structured Products Daily.
New Issue: BMO sells $7.29 million autocallable barrier notes with contingent coupon on indexes, ETF
By Taylor Fox
New York, Nov. 16 – Bank of Montreal priced $7.29 million of autocallable barrier notes with contingent coupons due April 29, 2022 linked to the SPDR Dow Jones Industrial Average ETF, the S&P 500 index and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
Every month, the notes will pay a coupon equal to 11.85% per year if each asset’s closing level is at least 70% of the initial level on the observation date for that month.
The notes will be automatically redeemed at par plus the contingent coupon if each index closes above its initial level on any monthly observation date beginning in April 26, 2021.
If the notes are not called, the payout at maturity will be par unless the final level of any asset finishes less than 70% 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
|
| Issue: | Autocallable barrier notes with contingent coupons
|
| Underlying assets: | SPDR Dow Jones Industrial Average ETF, S&P 500 index and Nasdaq 500 index
|
| Amount: | $7,290,000
|
| Maturity: | April 29, 2022
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| Coupon: | 11.85% per year, payable monthly if each asset’s closing level is at or above coupon barrier level on the observation date for that month
|
| Price: | Par
|
| Payout at maturity: | Par unless the final level of any asset is below 70% of its initial level, in which case investors will lose 1% for each 1% decline from the initial level of the least performing asset
|
| Call: | At par plus contingent coupon if assets close at or above initial levels on any monthly observation date beginning on April 26, 2021
|
| Initial levels: | $277 for ETF, 3,400.97 for S&P, 11,504.52 for Nasdaq
|
| Coupon barrier levels: | $193.90 for ETF, 2,380.68 for S&P, 8,053.16 for Nasdaq, 70% of initial levels
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| Trigger levels: | $193.90 for ETF, 2,380.68 for S&P, 8,053.16 for Nasdaq, 70% of initial levels
|
| Pricing date: | Oct. 26
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| Settlement date: | Oct. 29
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| Agent: | BMO Capital Markets Corp.
|
| Fees: | 0.25%
|
| Cusip: | 06368E3C4
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