By Marisa Wong
Madison, Wis., Dec. 15 - Bank of Montreal priced $90 million of 0% senior medium-term notes, series B, due Dec. 24, 2012 linked to a basket of 13 stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The equally weighted basket includes the common stocks of BB&T Corp, BMC Software, Inc., Brinker International, Inc., Chevron Corp., Lincoln National Corp., Nuance Communications, Inc., Nvidia Corp., Post Properties, Inc., Stanley Black & Decker Inc., Superior Energy Services, Inc., tw telecom inc.,VeriFone Systems, Inc. and Whiting Petroleum Corp.
The stocks were selected in December by the equity research department at Raymond James & Associates, Inc. as the "Raymond James Analysts' Best Picks for 2012." These stocks are expected to sustain operational growth and price appreciation over a 12-month period.
The notes priced at 102.75.
The payout at maturity will be par of $1,000 plus the basket return minus a redemption adjustment amount of $2.50 per note. As a result, the basket must appreciate by at least 3% for investors to receive a positive return on the notes.
Each basket stock's return will equal the adjusted final price divided by the adjusted initial price. The adjusted initial price of each stock is equal to the average of the stock's closing prices on the three consecutive days ended Dec. 15 plus $0.01.
The adjusted final price for each stock will equal the average of the closing prices on the valuation dates, minus $0.01, plus a dividend amount. The valuation dates are the three consecutive days ending Dec. 19, 2012.
BMO Capital Markets Corp. is the agent.
Issuer: | Bank of Montreal
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Issue: | Senior medium-term notes, series B
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Underlying stocks: | BB&T Corp. (Symbol: BBT); BMC Software, Inc. (Symbol: BMC); Brinker International, Inc. (Symbol: EAT); Chevron Corp. (Symbol: CVX); Lincoln National Corp. (Symbol: LNC); Nuance Communications, Inc.; Nvidia Corp. (Symbol: NVDA); Post Properties, Inc. (Symbol: PPS); Stanley Black & Decker Inc. (Symbol: SWK); Superior Energy Services, Inc. (Symbol: SPN); tw telecom inc. (Symbol: TWTC); VeriFone Systems, Inc. (Symbol: PAY); and Whiting Petroleum Corp. (Symbol: WLL)
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Amount: | $90 million
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Maturity: | Dec. 24, 2012
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Coupon: | 0%
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Price: | 102.75
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Payout at maturity: | Par plus basket return minus 0.25%
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Adjusted initial prices: | $23.5004 for BB&T; $33.8186 for BMC; $24.3568 for Brinker; $102.2819 for Chevron; $18.8670 for Lincoln; $24.1162 for Nuance; $13.9058 for Nvidia; $41.2868 for Post; $64.0350 for Black & Decker; $27.1201 for Superior; $19.3000 for tw telecom; $40.3335 for VeriFone; and $44.9723 for Whiting
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Pricing date: | Dec. 13
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Settlement date: | Dec. 20
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Agent: | BMO Capital Markets Corp.
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Fees: | None
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Cusip: | 06366QG92
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