New Issue: BMO prices $13.47 million Raymond James Oil Focus equity-linked notes

By Wendy Van Sickle

Columbus, Ohio, Sept. 27 – Bank of Montreal priced $13.47 million of 0% Raymond James Oil Focus equity-linked notes due Sept. 28, 2018, according to a 424B2 filing with the Securities and Exchange Commission.

The notes are linked to the stocks of Continental Resources, Inc., Canadian Natural Resources Ltd., Concho Resources Inc., EnLink Midstream, LLC, Halliburton Co., Hess Corp., Marathon Oil Corp., Newfield Exploration Co., Oasis Petroleum Inc., Patterson-UTI Energy, Inc., Pioneer Natural Resources Co., QEP Resources, Inc., RPC, Inc., Superior Energy Services, Inc. and Total SA.

Initially, each reference share will constitute 1/14th of the basket with an aggregate value of $66.6667 ($1,000 divided by 15). Accordingly, the number of shares of each reference share will be calculated by dividing $66.6667 by the adjusted initial share price of that stock.

As to any reference share, each cash dividend declared on that reference share will be deemed to reinvested by the basket in additional shares of that reference share. The number of additional shares to be added to the basket will be determined based on the product of (a) the number of such reference shares in the basket as of the applicable ex-dividend date multiplied by (b) the applicable dividend amount. The result will be divided by the closing price of the relevant reference share as of the applicable ex-dividend date. Accordingly, the number of shares of each reference share included in the basket will increase over the term of the notes if the relevant issuer pays dividends to holders of the reference share.

For each $1,000 principal amount of notes, the payout at maturity will be $1,000 multiplied by 96.75% multiplied by the basket level percentage. Because of the 96.75% participation rate, investors will receive less than par if the basket level percentage is less than 103.36%.

For each stock, its initial share price is the average of its average intraday prices on each averaging date – Sept. 21, Sept. 24 and Sept. 25.

For each stock, its final share price will be the average of its closing share prices on Sept. 21, 2018, Sept. 24, 2018 and Sept. 25, 2018.

BMO Capital Markets Corp. is the agent.

Issuer:	Bank of Montreal
Issue:	Raymond James Oil Focus equity-linked notes
Underlying stocks:	Continental Resources, Inc., Canadian Natural Resources Ltd., Concho Resources Inc., EnLink Midstream, LLC, Halliburton Co., Hess Corp., Marathon Oil Corp., Newfield Exploration Co., Oasis Petroleum Inc., Patterson-UTI Energy, Inc., Pioneer Natural Resources Co., QEP Resources, Inc., RPC, Inc., Superior Energy Services, Inc. and Total SA
Amount:	$13,469,000
Maturity:	Sept. 28, 2018
Coupon:	0%
Price:	Par
Payout at maturity:	$1,000 multiplied by 96.75% multiplied by quotient of final basket level divided by the initial basket level
Initial share prices:	For each stock, average of average intraday prices on Sept. 21, Sept. 24 and Sept. 25
Final share prices:	For each stock, average of closing share prices Sept. 21, 2018, Sept. 24, 2018 and Sept. 25, 2018
Pricing date:	Sept. 23
Settlement date:	Sept. 30
Agent:	BMO Capital Markets Corp.
Fees:	2%
Cusip:	06367TKU3

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