BMO plans notes on 22 limited duration funds chosen by Raymond James

By Susanna Moon

Chicago, Aug. 15 – Bank of Montreal plans to price notes due Sept. 7, 2018 linked to a basket of 22 limited duration closed-end funds selected in May by Raymond James & Associates, Inc., according to an FWP filing with the Securities and Exchange Commission.

The underlying funds are Apollo Senior Floating Rate Fund Inc. with a 4.5% weight, Ares Dynamic Credit Allocation Fund Inc. with a 5% weight, BlackRock Floating Rate Income Trust with a 4.5% weight, Wells Fargo Income Opportunities Fund with a 5% weight, Eaton Vance Senior Floating-Rate Trust with a 5% weight, Eaton Vance Floating-Rate Income Trust with a 5% weight, Eaton Vance Senior Income Trust with a 4% weight, Eaton Vance Short Duration Diversified Income Fund with a 4% weight, Eaton Vance Limited Duration Income Fund with a 5% weight, BlackRock Floating Rate Income Strategies Fund, Inc. with a 5% weight, The New America High Income Fund, Inc. with a 3.5% weight, BlackRock Corporate High Yield Fund, Inc. with a 5% weight, Prudential Short Duration High Yield Fund, Inc. with a 5% weight, Nuveen Credit Strategies Income Fund with a 5% weight, Nuveen Floating Rate Income Opportunity Fund with a 5% weight, Nuveen Senior Income Fund with a 4.5% weight, Pioneer Floating Rate Trust with a 4.5% weight, Pioneer High Income Trust with a 4.5% weight, Putnam Premier Income Trust with a 5% weight, Western Asset Corporate Loan Fund Inc. with a 2.5% weight, THL Credit Senior Loan Fund with a 3.5% weight and the Invesco Dynamic Credit Opportunities Fund with a 5% weight.

Interest is payable on Dec. 7, March 7, 2018, June 7, 2018 and at maturity. The interest amount will depend on the amount of dividends paid on each reference fund share during the preceding quarter and will equal the sum of the dividend amounts for each of the reference shares multiplied by 97.8%.

The payout at maturity will be par plus 97.8% of the basket return.

BMO Capital Markets Corp. is the agent.

The notes will settle on Aug. 25.

The Cusip number is 06367TA34.

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