New Issue: BMO prices $1.34 million notes linked to quality yield stock basket

By Wendy Van Sickle

Columbus, Ohio, Oct. 8 – Bank of Montreal priced $1.34 million of notes due Sept. 30, 2020 linked to a basket of 25 equally weighted stocks, according to a 424B2 filing with the Securities and Exchange Commission.

The underlying stocks are Analog Devices, Inc., Aflac Inc., Best Buy Co., Inc., BGC Partners, Inc., Chemical Financial Corp., Comcast Corp., CyrusOne Inc., Cisco Systems, Inc., CVS Health Corp., Delta Air Lines, Inc., Delek US Holdings, Inc., Fastenal Co., F.N.B. Corp., Home Depot, Inc., Hewlett Packard Enterprise Co., Ladder Capital Corp., Leggett & Platt, Inc., Marathon Petroleum Corp., MSC Industrial Direct Co., Inc., Old Republic International Corp., PacWest Bancorp, Plains GP Holdings, LP, Union Pacific Corp., Walmart Inc. and Weyerhaeuser Co.

The notes may pay a variable coupon. Interest, if any, is payable quarterly and will equal the sum of the dividend amounts for each of the reference shares multiplied by 96.6%.

For each reference share, the dividend amount is an amount in dollars equal to (a) $1,000 divided by the applicable adjusted initial share price multiplied by (b) the applicable reference share weighting multiplied by (c) 100% of the gross cash distributions per reference share declared by the applicable reference share issuer where the date that the applicable reference share has begun trading ex-dividend occurs during the relevant interest calculation period.

For each $1,000 principal amount of notes, the payout at maturity will be $1,000 multiplied by 96.6% multiplied by the basket level percentage. Because of the 98.6% participation rate, investors will receive less than par if the basket level percentage is less than 101.42%.

BMO Capital Markets Corp. is the agent. Raymond James is acting as a dealer and will receive a 2% fee.

Issuer:	Bank of Montreal
Issue:	Quality yield stock basket-linked notes
Underlying stocks:	Analog Devices, Inc., Aflac Inc., Best Buy Co., Inc., BGC Partners, Inc., Chemical Financial Corp., Comcast Corp., CyrusOne Inc., Cisco Systems, Inc., CVS Health Corp., Delta Air Lines, Inc., Delek US Holdings, Inc., Fastenal Co., F.N.B. Corp., Home Depot, Inc., Hewlett Packard Enterprise Co., Ladder Capital Corp., Leggett & Platt, Inc., Marathon Petroleum Corp., MSC Industrial Direct Co., Inc., Old Republic International Corp., PacWest Bancorp, Plains GP Holdings, LP, Union Pacific Corp., Walmart Inc. and Weyerhaeuser Co.
Amount:	$7,115,000
Maturity:	Sept. 30, 2020
Coupon:	Sum of dividend amounts for each reference share multiplied by 96.6%, payable quarterly but may be zero
Dividend amount:	(a) $1,000 divided by applicable adjusted initial share price multiplied by (b) applicable reference share weighting multiplied by (c) 100% of gross cash distributions per reference share declared by applicable reference share issuer where date that applicable reference share has begun trading ex-dividend occurs during relevant interest calculation period
Price:	Par
Payout at maturity:	$1,000 multiplied by 98.6% multiplied by basket level percentage
Initial share prices:	$94.56 for Analog, $480.4 for Aflac, $80.64 for Best Buy, $11.65 for BGC, $56.61 for Chemical Financial, $37.90 for Comcast, $68.24 for CyrusOne, $48.56 for Cisco, $79.59 for CVS, $59.61 for Delta, $43.94 for Delek, $58.90 for Fastenal, $13.33 for F.N.B., $212.39 for Home Depot, $17.02 for Hewlett, $17.08 for Ladder, $45.65 for Leggett, $83.37 for Marathon, $88.62 for MSC, $22.95 for Old Republic, $50.75 for PacWest, $24.15 for Plains, $164.99 for Union Pacific, $95.90 for Walmart, $33.01 for Weyerhauser
Pricing date:	Sept. 21
Settlement date:	Sept. 28
Agent:	BMO Capital Markets Corp.
Fees:	None
Cusip:	06367WCE1

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