Published on 12/1/2023 in the Prospect News Structured Products Daily.
New Issue: BMO sells $810,000 autocallable notes with contingent coupons on airline basket
Chicago, Dec. 1 – Bank of Montreal priced $810,000 of autocallable notes with a contingent coupons due July 31, 2025 linked to an equally-weighted basket consisting of the stocks of United Airlines Holdings, Inc., JetBlue Airways Corp., American Airlines, Inc. and Delta Air Lines, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a monthly coupon equal to 12.5% per year if the basket closes at or above the coupon barrier level, 50% of initial level, on the relevant observation date.
The notes will be automatically redeemed at par plus the contingent coupon if the basket closes at or above its initial level on any monthly observation date after six months.
If the notes are not called and the basket finishes at or above its 50% trigger level, the payout at maturity will be par.
Otherwise, investors will receive a number of shares of each basket component equal to $1,000 divided by that component’s initial level multiplied by its weighting percentage or, at the issuer’s option, the cash equivalent.
BMO Capital Markets Corp. is the agent.
Issuer: | Bank of Montreal
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Issue: | Autocallable notes with contingent coupon
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Underlying basket: | United Airlines Holdings, Inc., JetBlue Airways Corp., American Airlines, Inc. and Delta Air Lines, Inc.; equal weights
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Amount: | $810,000
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Maturity: | July 31, 2025
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Coupon: | 12.5% per year, payable monthly if basket closes at or above coupon barrier level on related observation date
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Price: | Par
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Payout at maturity: | If the basket finishes at or above trigger level, par; otherwise, receive a number of shares of each basket component equal to $1,000 divided by that component’s initial level multiplied by its weighting percentage or, at the issuer’s option, the cash equivalent
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Call: | At par plus contingent coupon if the basket closes at or above initial level on any monthly observation date after six months
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Initial levels: | $42.45 for United, $7.46 for JetBlue, $14.00 for American, $33.90 for Delta
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Coupon barrier: | 50% of initial level
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Trigger level: | 50% of initial level
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Pricing date: | Oct. 26, 2022
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Settlement date: | Oct. 31, 2022
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Agent: | BMO Capital Markets Corp.
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Fees: | 3.5%
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Cusip: | 06369NDM0
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