Published on 12/5/2020 in the Prospect News Structured Products Daily.
New Issue: BMO prices $1.27 million autocallable buffer notes on S&P and gold ETF
By Taylor Fox
New York, Dec. 7 – Bank of Montreal priced $1.27 million of autocallable buffer notes with contingent coupons due Nov. 30, 2022 linked to the S&P 500 index and VanEck Vectors Gold Miners ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes pay a contingent coupon at an annual rate of 6% if each asset finishes above 80% of its initial level on the related observation date.
The notes will be automatically called at par if the least performing asset closes at or above 90% of its initial index level on any quarterly observation date after six months.
If the notes are not called and the least performing asset return is above 80% of its initial level, the payout at maturity will be par. Investors will lose 1% for each 1% loss beyond 20%.
BMO Capital Markets Corp. is the underwriter.
| Issuer: | Bank of Montreal
|
| Issue: | Autocallable buffer notes with contingent coupons
|
| Underlying assets: | S&P 500 index and VanEck Vectors Gold Miners ETF
|
| Amount: | $1,272,000
|
| Maturity: | Nov. 30, 2022
|
| Coupon: | 6% annual rate, payable quarterly if each asset finishes above its coupon barrier level on related observation date
|
| Price: | Par
|
| Payout at maturity: | If the notes are not called and each asset finishes above 80% of its initial level, par; 1% loss for each 1% loss beyond 20%
|
| Call: | Automatically at par if both assets close at or above the 90% of their initial level on any quarterly observation date after six months
|
| Initial levels: | 3,629.65 for S&P and $34.04 for VanEck
|
| Call levels: | 3,266.69 for S&P and $30.64 for VanEck, 90% of initial levels
|
| Coupon/buffer levels: | 2,903.72 for S&P and $27.23 for VanEck, 80% of initial level
|
| Pricing date: | Nov. 25
|
| Settlement date: | Nov. 30
|
| Agent: | BMO Capital Markets Corp.
|
| Fees: | 2.25%
|
| Cusip: | 06368E6A5
|
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