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Bank of Montreal plans interest rate sensitivity notes on 13 stocks
By Marisa Wong
Madison, Wis., May 12 – Bank of Montreal plans to price 0% interest rate sensitivity equity linked notes due Feb. 3, 2017 linked to an equally weighted basket of 13 common stocks selected by Raymond James & Associates, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The reference shares are Bank of America Corp., Bank of New York Mellon Corp., East West Bancorp, Inc., HealthEquity, Inc., Northern Trust Corp., PrivateBancorp, Inc., Prudential Financial, Inc., SVB Financial Group, TD Ameritrade Holding Corp., Texas Capital Bancshares, Inc., Wells Fargo & Co., Wintrust Financial Corp. and Zions Bancorp.
The payout at maturity will be par of $1,000 times the basket level percentage minus the redemption adjustment amount of $3.50. The basket level percentage must exceed 103.1% in order for investors to break even.
The basket level percentage will be the sum of the weighted reference share performances. For each basket stock, the reference share performance will equal the applicable adjusted final share price divided by the applicable adjusted initial share price.
The adjusted initial share price will be determined over three averaging dates occurring shortly before the issue date of the notes. For each stock, the adjusted initial share price will equal the sum of the unadjusted initial share price and $0.01. The unadjusted initial price will be the average of the average intraday prices on each averaging date.
The adjusted final share price for each reference stock will be the sum of the average of the closing prices on each valuation date, minus $0.01, and the dividends for that stock. The valuation dates are Jan. 27, Jan. 30 and Jan. 31, 2017.
BMO Capital Markets Corp. is the agent.
The notes will settle on June 5.
The Cusip number is 06366RM69.
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