Bank of Montreal to sell notes on Raymond James-picked housing stocks

By Marisa Wong

Morgantown, W.Va., Sept. 8 – Bank of Montreal plans to price notes due Sept. 30, 2016 linked to a basket of 13 equally weighted U.S.-housing-related common equity securities selected in August by Raymond James & Associates, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The underlying companies are Apartment Investment and Management Co., American Homes 4 Rent, American Residential Properties, Inc., Catchmark Timber Trust, Inc., D.R. Horton, Inc., St. Joe Co., Mohawk Industries, Inc., Potlatch Corp., PGT, Inc., Post Properties, Inc., Toll Brothers, Inc., WCI Communities, Inc. and Weyerhaeuser Co.

The notes may pay a variable coupon, which will depend on the total dividends paid on the shares during the preceding quarter. Interest, if any, is payable quarterly.

The payout at maturity will be par of $1,000 times 97.5% of the basket return.

Investors will receive less than par if the basket does not finish at 102.56% of par.

The initial share price of each stock will be determined over three averaging dates – Sept. 18, Sept. 21 and Sept. 22 – occurring shortly before issuance. Likewise, the final share price of each stock will be determined over three valuation dates, which are Sept. 23, 2016, Sept. 26, 2016 and Sept. 27, 2016.

BMO Capital Markets Corp. is the agent.

The notes will settle on Sept. 25.

The Cusip is 06366RY33.

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