Published on 6/30/2021 in the Prospect News Structured Products Daily.
New Issue: BMO sells $9 million autocallable barrier notes with contingent coupon on indexes, ETF
By William Gullotti
Buffalo, N.Y., June 30 – Bank of Montreal priced $2.55 million of autocallable barrier notes with contingent coupons due Sept. 30, 2022 linked to the VanEck Vectors Gold Miners ETF, the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a monthly coupon equal to 12.25% per year if each asset’s closing level is at least 65% of its initial level on the relevant observation date.
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 after six months.
If the notes have not been called, the payout at maturity will be par unless any underlier closes below its 65% trigger value during the life of the notes and any underlier finishes below its initial level, in which case investors will lose 1% for every 1% that the lesser-performing asset finishes below its initial level.
BMO Capital Markets Corp. is the agent.
| Issuer: | Bank of Montreal
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| Issue: | Autocallable barrier notes with contingent coupons
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| Underlying assets: | VanEck Vectors Gold Miners ETF, Russell 2000 index, S&P 500 index
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| Amount: | $2,550,000
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| Maturity: | Sept. 30, 2022
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| Coupon: | 12.25% per year, payable monthly if each asset’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 unless any underlier closes below its trigger value during the life of the notes and any underlier finishes below its initial level, in which case investors will lose 1% for every 1% that the lesser-performing asset finishes below its initial level.
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| Call: | At par plus contingent coupon if assets close above initial levels on any monthly observation date after six months
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| Initial levels: | $34.36 for ETF, 2,334.396 for Russell, 4,280.7 for S&P
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| Coupon barrier levels: | $22.33 for ETF, 1,517.357 for Russell, 2,782.46 for S&P; 65% of initial levels
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| Trigger levels: | $22.33 for ETF, 1,517.357 for Russell, 2,782.46 for S&P; 65% of initial levels
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| Pricing date: | June 25
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| Settlement date: | June 30
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 0.25%
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| Cusip: | 06368EQU9
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