Published on 3/14/2024 in the Prospect News Structured Products Daily.
New Issue: BMO prices $1,000 autocallable barrier notes with contingent coupons on stock basket
By Kiku Steinfeld
Chicago, March 14 – Bank of Montreal priced $1,000 of 0% autocallable barrier notes with contingent coupons due July 7, 2025 linked to an equally-weighted basket of stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of Analog Devices, Inc., Amphenol Corp., Edwards Lifesciences Corp., Freeport-McMoRan Inc., Intuitive Surgical, Inc., KLA Corp., ServiceNow, Inc., Prologis, Inc., Schlumberger NV and Synopsys, Inc.
The notes will pay a monthly coupon equal to 9% per year if the stock basket closes above its trigger level, 70% of its initial level, on the relevant observation date.
The notes will be automatically redeemed at par if the stock basket closes at or above its initial level on any monthly observation date after one year.
If the notes are not called and the basket finishes at or above its trigger level, the payout will be par. Otherwise, investors will lose 1% for each 1% decline of the basket from its initial level.
BMO Capital Markets Corp. is the underwriter.
| Issuer: | Bank of Montreal
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| Issue: | Autocallable barrier notes with contingent coupons
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| Underlying components: | Analog Devices, Inc., Amphenol Corp., Edwards Lifesciences Corp., Freeport-McMoRan Inc., Intuitive Surgical, Inc., KLA Corp., ServiceNow, Inc., Prologis, Inc., Schlumberger NV and Synopsys, Inc.; equal weights
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| Amount: | $1,000
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| Maturity: | July 7, 2025
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| Coupon: | 9% per year, payable monthly if stock basket closes at or above trigger level on related observation date
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| Price: | Par
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| Payout at maturity: | Par if stock basket finishes above trigger level; otherwise, lose 1% for each 1% decline of stock basket from its initial level
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| Call: | Automatically at par if the stock basket closes at or above its initial level on any monthly observation date after one year
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| Initial level: | $189.48 for Analog, $83.45 for Amphenol, $92.02 for Edwards, $39.35 for Freeport, $338.49 for Intuitive, $477.23 for KLA, $548.08 for ServiceNow, $121.50 for Prologis, $48.47 for Schlumberger, $427.90 for Synopsys
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| Trigger levels: | 70% of initial level
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| Pricing date: | June 29, 2023
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| Settlement date: | July 5, 2023
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| Underwriter: | BMO Capital Markets Corp.
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| Fees: | 0.25%
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| Cusip: | 06374VW69
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