Published on 11/22/2020 in the Prospect News Structured Products Daily.
New Issue: BMO prices $2.5 million autocallable barrier notes on Nasdaq, Russell, gold ETF
By Taylor Fox
New York, Nov. 23 – Bank of Montreal priced $2.5 million of autocallable barrier notes due Feb. 18, 2022 linked to the shares of VanEck Vectors Gold Miners ETF, the Russell 2000 index and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes will pay a contingent coupon at a rate of 12.55% per year if each asset closes at or above 65% of its initial level on the observation date for that month.
The notes will be automatically redeemed at par plus the contingent coupon if each asset closes above its initial level on any monthly observation date beginning May 13, 2021.
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 of the least performing asset from its initial level.
BMO Capital Markets Corp. is the agent.
| Issuer: | Bank of Montreal
|
| Issue: | Autocallable barrier notes
|
| Underlying assets: | VanEck Vectors Gold Miners, Russell 2000 index and Nasdaq 100 index
|
| Amount : | $2,499,000
|
| Maturity: | Feb. 18, 2022
|
| Coupon: | 12.55% per year, payable each month that each index closes at or above coupon barrier on the observation date for that month
|
| Price: | Par
|
| Payout at maturity: | Par unless either asset finishes below trigger level, in which case 1% loss for each 1% decline from the initial level of the least performing asset
|
| Call: | At par plus contingent coupon if each asset closes above its initial level on any monthly observation date beginning May 13, 2021
|
| Initial levels: | 1,744.042 for Russell, 11,937.84 for Nasdaq, $38.01 for VanEck
|
| Coupon barriers: | 1,113.627 for Russell, 7,759.60 for Nasdaq, $24.71 for VanEck; 65% of initial levels
|
| Trigger levels: | 1,046.425 for Russell, 7,162.70 for Nasdaq, $22.81 for VanEck; 60% of initial levels
|
| Pricing date: | Nov. 13
|
| Settlement date: | Nov. 18
|
| Agent: | BMO Capital Markets Corp.
|
| Fees: | 0.25%
|
| Cusip: | 06368E4S8
|
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