Bank of Montreal to price 10-year notes linked to BMO Q-30 Strategy

By Angela McDaniels

Tacoma, Wash., July 2 – Bank of Montreal plans to price 0% notes due July 31, 2024 linked to the BMO Q-30 Strategy, according to a 424B2 filing with the Securities and Exchange Commission.

The issue price will be 102.

The strategy creates a hypothetical portfolio of stocks selected from the S&P 500 index. The strategy was designed to find those companies that have growth potential, based on the strategy’s financial metrics. The portfolio will initially be an equally weighted basket of the top 30 ranked securities as determined by the strategy. The calculation agent will adjust the stocks included in the portfolio on a daily basis.

The payout at maturity will be the indicative note value on the final valuation date.

On the pricing date, the indicative note value will be $1,000. On each subsequent trading day, it will equal (a) (i) the indicative note value on the preceding trading day multiplied by (ii) the quotient of the portfolio closing level on that day divided by the portfolio closing level on the preceding trading day minus (b) the investor fee plus any trailing fee for that day.

On any trading day, the investor fee is (a) the indicative note value on the preceding trading day multiplied by (b) 0.5% per year multiplied by (c) (i) the number of calendar days from and including the preceding trading day to the current trading day divided by (ii) 360.

The trailing fee is calculated quarterly and equals (a) the indicative note value on the preceding trading day multiplied by (b) 0.125% per quarter (equivalent to 0.5% per year).

BMO Capital Markets Corp. is the agent.

The notes are expected to price July 28 and settle July 31.

The Cusip number is 06366RTZ8.

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