Bank of Montreal plans tracking notes tied to Morningstar MLP Composite

By Toni Weeks

San Luis Obispo, Calif., March 3 – Bank of Montreal plans to price tracking notes due April 8, 2016 linked to the Morningstar MLP Composite index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes may pay a quarterly coupon based on the cash distributions made on the securities included in the index.

The payout at maturity will be an amount in cash equal to the indicative note price as of the final valuation date.

On the pricing date, the indicative note price will be $980, or 98% of par. On each subsequent trading day, the indicative note price will be the (a) the product of the indicative note price on the immediately preceding trading day multiplied by the index factor minus (b) an investor fee of 0.5% per year. The index factor is the index closing level on that trading day divided by the index closing level on the immediately preceding trading day.

BMO Capital Markets Corp. is the agent.

The notes will price March 26 and settle March 31.

The Cusip number is 06366RD28.

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