New Issue: BMO sells $3.32 million buffer enhanced return notes linked to weighted basket

By William Gullotti

Buffalo, N.Y., Feb. 21 – Bank of Montreal priced $3.32 million of 0% buffer enhanced return notes due Feb. 16, 2027 linked to a weighted basket, according to a 424B2 filing with the Securities and Exchange Commission.

The basket consists of the S&P 500 index with a 38% weight, the iShares MSCI EAFE ETF with a 25% weight, the S&P MidCap 400 index with a 15% weight, the iShares MSCI Emerging Markets ETF with a 12% weight and the Russell 2000 index with a 10% weight.

The payout at maturity will be par plus 150% of any gain of the basket, subject to a maximum return of par plus 43.7%.

Investors will receive par if the basket falls by up to 5% and will lose 1% for every 1% decline of the basket beyond the 5% buffer.

BMO Capital Markets Corp. is the underwriter.

Issuer:	Bank of Montreal
Issue:	Buffer enhanced return notes
Underlying assets:	S&P 500 index (38% weight), iShares MSCI EAFE ETF (25% weight), S&P MidCap 400 index (15% weight), iShares MSCI Emerging Markets ETF (12% weight), Russell 2000 index (10% weight)
Amount:	$3,318,000
Maturity:	Feb. 16, 2027
Coupon:	0%
Price:	Par
Payout at maturity:	Par plus 150% of any basket gain, capped at par plus 43.7%; par if basket falls by up to 5%; otherwise, 1% loss per 1% decline of basket beyond 5%
Initial levels:	5,021.84 for S&P 500, $75.43 for EAFE ETF, 2,834.34 for S&P MidCap, $39.89 for EM ETF, 2,045.257 for Russell
Buffer level:	95% of initial level
Pricing date:	Feb. 12
Settlement date:	Feb. 15
Underwriter:	BMO Capital Markets Corp.
Fees:	1.2%
Cusip:	06375MV44

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