Bank of Montreal plans to price tracking notes linked to 20 stocks

By Angela McDaniels

Tacoma, Wash., Nov. 5 - Bank of Montreal plans to price 0% basket tracking notes due Dec. 10, 2014 linked to the Top 20 GARP Picks Portfolio, according to a 424B2 filing with the Securities and Exchange Commission.

The portfolio is a basket of 20 common stocks selected by Sabrient Systems, LLC using an eight-step process meant to identify companies that are trading at reasonable prices in light of their growth rates.

The basket includes equal weights of Actavis plc, Arris Group, Inc., Bonanza Creek Energy, Inc., Delta Air Lines, Inc., Ford Motor Co., Forest Laboratories, Inc., Gentex Corp., Greenbrier Cos., Inc., Jazz Pharmaceuticals plc, KapStone Paper and Packaging Corp., Lam Research Corp., Metlife Inc., Micron Technology, Inc., Nasdaq OMX Group, Inc., Nu Skin Enterprises, Inc., NXP Semiconductors NV, Ocwen Financial Corp., Prudential Financial, Inc., Spirit Airlines, Inc. and Verizon Communications Inc.

The payout at maturity will be par plus 97.25% of the basket return. There is no principal protection, so investors may receive less than par, and because of the participation rate, the final basket level must exceed 102.83% of the initial basket level in order for the payout to be more than par.

The initial share price of each stock will be the average of its closing share prices on Nov. 21, Nov. 22 and Nov. 25.

The final share price of each stock will equal the sum of (a) the average of the closing prices of that stock on Dec. 3, 2014, Dec. 4, 2014 and Dec. 5, 2014 and (b) the dividend amount for that stock, which will equal 100% of the gross cash distributions per share declared by the stock issuer where the date that the stock has commenced trading ex-dividend on its primary U.S. securities exchange as to each relevant distribution occurs from the second averaging date to the final valuation date.

BMO Capital Markets Corp. is the agent.

The notes are expected to settle Nov. 29.

The Cusip number is 06366RRX5.

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