Chicago, July 24 – Bank of Montreal priced $959,000 of autocallable barrier notes with memory coupons due July 26, 2027 linked to the SPDR S&P Regional Banking ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly coupon equal to 11.55% per year if the ETF closes at or above its coupon barrier level, 75% of its initial price, on the relevant observation date. Previously unpaid coupons, if any, will be automatically included whenever a coupon is paid.
The notes will be automatically redeemed at par plus the contingent coupon if the ETF closes at or above its initial price on any quarterly observation date.
If the notes are not called and the ETF finishes at or above its coupon barrier, the payout at maturity will be par plus all unpaid coupons.
If the ETF finishes below the coupon barrier but at or above 50% of its initial price, the payout will be par. Otherwise, investors will lose 1% for each 1% decline of the ETF from its initial price.
BMO Capital Markets Corp. is the agent.
Issuer: | Bank of Montreal
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Issue: | Autocallable barrier notes with memory coupons
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Underlying fund: | SPDR S&P Regional Banking ETF
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Amount: | $959,000
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Maturity: | July 26, 2027
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Coupon: | 11.55% per year, payable quarterly if ETF closes at or above coupon barrier level on related observation date; coupon payment events will automatically include any previously unpaid coupons
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Price: | Par
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Payout at maturity: | If the ETF finishes at or above its coupon barrier, par plus all unpaid coupons; if the ETF finishes below its coupon barrier but at or above trigger price, par; otherwise, full exposure to decline from initial price
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Call: | At par plus contingent coupon if the ETF closes at or above initial price on any quarterly observation date
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Initial price: | $43.88
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Coupon barrier: | $32.91; 75% of initial price
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Trigger price: | $21.94; 50% of initial price
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Strike date: | July 17
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Pricing date: | July 19
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Settlement date: | July 24
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Agent: | BMO Capital Markets Corp.
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Fees: | 0.25%
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Cusip: | 06375M3B9
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