By Marisa Wong
Morgantown, W.Va., Feb. 22 – Bank of Montreal priced $52.66 million of 0% interest rate and economic sensitivity equity-linked notes due Feb. 25, 2019 linked to a basket of 14 stocks selected by Raymond James & Associates, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The reference stocks are financial services sector securities selected by Raymond James’ equity research department based on its belief that some U.S. companies related to this sector may become more profitable during its forecasted economic environment, including if interest rates rise during the term of the notes, according to the filing.
The underlying companies are American Equity Investment Life Holding Co., Bank of America Corp., Comerica Inc., E*Trade Financial Corp., HealthEquity, Inc., MarketAxess Holdings Inc., Meta Financial Group, Inc., Northern Trust Corp., Preferred Bank, Signature Bank, SVB Financial Group, TD Ameritrade Holding Corp., Texas Capital Bancshares, Inc. and Wintrust Financial Corp. Each stock has a 7.5% weight in the basket, except for Meta Financial with a 6% weight and Preferred Bank with a 4% weight.
For each $1,000 principal amount, the payout at maturity will be (a) $1,000 multiplied by (b) the basket level percentage – the sum of the weighted reference share performances – multiplied by (c) 96.75%. Because the participation rate is less than 100%, the basket level percentage must exceed 103.36% in order for investors to receive more than par.
The reference share performance includes the payment of dividends.
For each stock, the initial share price will be the average of that stock’s average intraday pricings on each of the three trading days ending Feb. 22. The final share price will be the average of that stock’s closing share prices on the three trading days ending Feb. 21, 2019.
BMO Capital Markets Corp. is the agent.
| Issuer: | Bank of Montreal
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| Issue: | Interest rate and economic sensitivity equity-linked notes
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| Underlying stocks: | American Equity Investment Life Holding Co. (Symbol: AEL); Bank of America Corp. (Symbol: BAC); Comerica Inc. (Symbol: CMA); E*Trade Financial Corp. (Symbol: ETFC); HealthEquity, Inc. (Symbol: HQY); MarketAxess Holdings Inc. (Symbol: MKTX); Meta Financial Group, Inc. (Symbol: CASH); Northern Trust Corp. (Symbol: NTRS); Preferred Bank (Symbol: PFBC); Signature Bank (Symbol: SBNY); SVB Financial Group (Symbol: SIVB); TD Ameritrade Holding Corp. (Symbol: AMTD); Texas Capital Bancshares, Inc. (Symbol: TCBI); and Wintrust Financial Corp. (Symbol: WTFC); each with 7.5% weight except for Meta Financial with 6% weight and Preferred Bank with 4% weight
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| Amount: | $52,663,000
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| Maturity: | Feb. 25, 2019
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | For each $1,000 principal amount, (a) $1,000 multiplied by (b) the basket level percentage – the sum of the weighted reference share performances – multiplied by (c) 96.75%; basket level percentage must exceed 103.36% in order for investors to receive more than par
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| Initial share price: | Average of stock’s average intraday pricings on each of the three trading days ending Feb. 22
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| Final share price: | Average of stock’s closing share prices on the three trading days ending Feb. 21, 2019
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| Pricing date: | Feb. 17
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| Settlement date: | Feb. 24
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 2%
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| Cusip: | 06367TSD3
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