Published on 8/12/2014 in the Prospect News Structured Products Daily.
New Issue: Bank of Montreal prices $101.01 million notes linked to ‘New U.S. Energy Paradigm’ stock basket
By Angela McDaniels
Tacoma, Wash., Aug. 12 – Bank of Montreal priced $101.01 million of 0% “New U.S. Energy Paradigm” notes due Aug. 19, 2015 linked to a basket of common stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The basket companies are Antero Resources Corp., Bonanza Creek Energy, Inc., Continental Resources, Inc., Consol Energy Inc., Cabot Oil & Gas Corp., EOG Resources, Inc., Chart Industries, Inc., Halliburton Co., Hi-Crush Partners LP, Kansas City Southern, LyondellBasell Industries NV, Marathon Oil Corp., Nabors Industries Ltd., Plains GP Holdings, LP, Phillips 66, Pioneer Natural Resources Co., Targa Resources Corp., Union Pacific Corp., USA Compression Partners, LP and Valero Energy Corp. The weight is 5.2% for each stock other than USA Compression Partners, which has a 1.2% weight due to its lower liquidity.
The companies were selected by Raymond James & Associates, Inc. in July.
The issue price is 102.75.
The payout at maturity will be par plus the basket return minus a redemption adjustment amount of $2.50 per $1,000 principal amount of notes.
The breakeven level is 103%, meaning investors will receive less than par if the final basket level is not at least 103% of the initial basket level.
For each basket stock, the initial share price is (a) the average of its average intra-day prices on the three trading days ending Aug. 12, 2014 plus (b) $0.01. For each basket stock, the final share price is (a) the average of the closing prices on the three trading days ending Aug. 14, 2015 minus $0.01 plus (b) 100% of the gross cash distributions made per share from Aug. 11, 2014 through Aug. 14, 2015.
BMO Capital Markets Corp. is the agent with Raymond James as distributor.
| Issuer: | Bank of Montreal
|
| Issue: | “New U.S. Energy Paradigm” notes
|
| Underlying stocks: | Antero Resources Corp., Bonanza Creek Energy, Inc., Continental Resources, Inc., Consol Energy Inc., Cabot Oil & Gas Corp., EOG Resources, Inc., Chart Industries, Inc., Halliburton Co., Hi-Crush Partners LP, Kansas City Southern, LyondellBasell Industries NV, Marathon Oil Corp., Nabors Industries Ltd., Plains GP Holdings, LP, Phillips 66, Pioneer Natural Resources Co., Targa Resources Corp., Union Pacific Corp., USA Compression Partners, LP and Valero Energy Corp.; weight is 1.2% for USA Compression Partners and 5.2% for each other stock
|
| Amount: | $101,005,000
|
| Maturity: | Aug. 19, 2015
|
| Coupon: | 0%
|
| Price: | 102.75
|
| Payout at maturity: | Par plus basket return minus redemption adjustment amount of $2.50 per $1,000 principal amount of notes
|
| Initial share prices: | For each stock, (a) average of its average intra-day prices on three trading days ending Aug. 12, 2014 plus (b) $0.01
|
| Final share prices: | For each basket stock, (a) average of closing prices on three trading days ending Aug. 14, 2015 minus $0.01 plus (b) 100% of gross cash distributions made per share from Aug. 11, 2014 through Aug. 14, 2015
|
| Pricing date: | Aug. 8
|
| Settlement date: | Aug. 15
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| Agent: | BMO Capital Markets Corp.
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| Dealer: | Raymond James & Associates, Inc.
|
| Fees: | None for BMO and 2.75% for Raymond James
|
| Cusip: | 06366RVH5
|
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