Bank of Montreal to price notes linked to responsible investing stocks

By Angela McDaniels

Tacoma, Wash., June 8 – Bank of Montreal plans to price 0% senior medium-term notes, series C, due July 8, 2016 linked to the Ameriprise Financial Investment Research Group’s Sustainable and Responsible Investing Equity Focus List, according to an FWP filing with the Securities and Exchange Commission.

The list includes the common stocks of ACE Ltd., Apple Inc., Bank of America Corp., Coca-Cola Co., Costco Wholesale Corp., Ford Motor Co., Johnson & Johnson, Kimberly-Clark Corp., Kroger Co., Starbucks Corp., Walt Disney Co., Waste Management, Inc., WhiteWave Foods Co. and Xylem Inc.

Ameriprise Financial’s Investment Research Group defines sustainable and responsible investing as an investment strategy that seeks to combine investor values with performance-enhancing characteristics gained from the identification and analysis of environmental, social and governance information.

The payout at maturity will equal (a) the product of (i) $1,000 and (ii) the basket level percentage multiplied by (b) the participation rate, which will be 97.6%.

The basket level percentage is the sum of the weighted performances of the reference stocks. Each stock’s final share price will be equal to its closing price on July 5, 2016 plus the dividends declared on that stock during the life of the notes, and each stock’s performance will equal its final share price divided by its initial share price.

Because of the participation rate, the basket level percentage must exceed 102.46% in order for investors to receive more than par.

BofM Capital Markets Corp. is the agent. Ameriprise Financial Services, Inc. will act as distributor.

The notes are expected to price June 25 and settle June 30.

The Cusip number is 06366RP74.

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