Published on 1/17/2014 in the Prospect News Structured Products Daily.
New Issue: Bank of Montreal prices $168.86 million notes linked to Raymond James stock picks
By Angela McDaniels
Tacoma, Wash., Jan. 17 - Bank of Montreal priced $168.86 million of 0% senior medium-term notes, series B, due Jan. 28, 2015 linked to Raymond James Analysts' Best Picks for 2014, according to a 424B2 filing with the Securities and Exchange Commission.
The picks are Advance Auto Parts, Inc., Antero Resources Corp., Apple Inc., Cameron International Corp., Comcast Corp., Copa Holdings, SA, Ctrip.com International, Ltd., Intuit Inc., JPMorgan Chase & Co., Newell Rubbermaid Inc., Praxair, Inc., Quintiles Transnational Holdings, Inc. and Salesforce.com, Inc. Each stock has an equal weighting in the basket.
The stocks were selected in December by the equity research department at Raymond James & Associates, Inc. The Raymond James analysts' goal in selecting the Best Picks for 2014 was to identify stocks that will be able 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 sum of the weighted reference share returns 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 an amount that exceeds the issue price of the notes.
Each reference share's return will equal its adjusted final price divided by its adjusted initial price.
The adjusted initial price of each stock is the average of the stock's intra-day prices, as determined by the issuer, on Jan. 15, Jan. 16 and Jan. 17 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 the dividend amount, which is equal to 100% of the gross cash distributions declared on one share of that stock during the life of the notes. The valuation dates are expected to be Jan. 21, 2015, Jan. 22, 2015 and Jan. 23, 2015.
BMO Capital Markets Corp. is the agent. Raymond James is acting as distributor and will receive 2.75%.
| Issuer: | Bank of Montreal
|
| Issue: | Senior medium-term notes, series B
|
| Underlying stocks: | Advance Auto Parts, Inc., Antero Resources Corp., Apple Inc., Cameron International Corp., Comcast Corp., Copa Holdings, SA, Ctrip.com International, Ltd., Intuit Inc., JPMorgan Chase & Co., Newell Rubbermaid Inc., Praxair, Inc., Quintiles Transnational Holdings, Inc. and Salesforce.com, Inc., equally weighted
|
| Amount: | $168,858,000
|
| Maturity: | Jan. 28, 2015
|
| Coupon: | 0%
|
| Price: | 102.75
|
| Payout at maturity: | Par plus sum of weighted reference share returns minus redemption adjustment amount of $2.50 per note
|
| Adjusted initial prices: | $117.8360 for Advance Auto Parts, $56.7663 for Antero, $553.0090 for Apple, $58.5667 for Cameron, $53.7067 for Comcast, $152.4176 for Copa, $40.9848 for Ctrip, $76.9471 for Intuit, $58.9169 for JPMorgan, $31.9936 for Newell Rubbermaid, $132.7222 for Praxair, $49.4884 for Quintiles and $59.2649 for Salesforce.com
|
| Pricing date: | Jan. 15
|
| Settlement date: | Jan. 23
|
| Agent: | BMO Capital Markets Corp.
|
| Distributor: | Raymond James
|
| Fees: | None for BMO and 2.75% for Raymond James
|
| Cusip: | 06366RSG1
|
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