By William Gullotti
Buffalo, N.Y., Feb. 15 – Bank of Montreal priced $2.13 million of callable barrier notes with contingent coupons due Feb. 5, 2025 linked to the stock performance of Signature Bank, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon equal to 15% per year if the stock’s closing level is at least 50% of its initial level on the relevant observation date.
The notes will be callable at par plus any coupon otherwise due on any quarterly observation date starting Oct. 31, 2023.
If the notes are not called, the payout at maturity will be par plus the final coupon unless the stock finishes below its 50% trigger level, in which case investors will lose 1% for each 1% of stock 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 stock: | Signature Bank
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Amount: | $2,127,000
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Maturity: | Feb. 5, 2025
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Coupon: | 15% per year, payable quarterly if the stock’s closing level is at or above its coupon barrier level on the relevant observation date
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Price: | Par
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Payout at maturity: | Par plus final coupon unless the stock finishes below its trigger level, in which case investors will lose 1% for each 1% of stock decline from its initial level
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Call option: | At par plus any coupon due on any quarterly observation date starting Oct. 31, 2023
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Initial level: | $128.95
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Coupon barrier level: | $64.47; 50% of initial level
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Trigger level: | $64.47; 50% of initial level
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Pricing date: | Jan. 31
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Settlement date: | Feb. 3
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Agent: | BMO Capital Markets Corp.
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Fees: | 1%
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Cusip: | 06374VMD5
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