New Issue: BMO prices $50.05 million notes on Raymond James Best Picks for 2020

By Wendy Van Sickle

Columbus, Ohio, Jan. 28 – Bank of Montreal priced $50.05 million of 0% notes due Feb. 1, 2021 linked to a basket of equally weighted stocks selected as Raymond James Analysts’ Best Picks for 2020, according to a 424B2 filing with the Securities and Exchange Commission.

In December of each year, the equity research department at Raymond James selects its best picks for the following calendar year. Raymond James’ goal in selecting its best picks is to identify stocks that will be able to sustain operational growth and price appreciation over a 12-month period.

The reference shares are Aaron's, Inc., CVS Health Corp., CyrusOne Inc., EchoStar Corp., Fidelity National Information Services, Inc., HealthEquity, Inc., Invitation Homes Inc., Masco Corp., Pioneer Natural Resources Co., Polaris Inc., Rapid7, Inc., salesforce.com, inc., TCF Financial Corp., Under Armour, Inc., United Parcel Service, Inc. and Zimmer Biomet Holdings, Inc.

For each $1,000 principal amount, the payout at maturity will be (a) $1,000 multiplied by (b) the basket level percentage – the sum of the weighted reference share performances – multiplied by (c) 97.8%. Because the participation rate is less than 100%, the basket level percentage must exceed 102.25% in order for investors to receive more than par.

For each stock, the initial share price is the average of that stock’s average intraday prices on Jan. 23, Jan. 24 and Jan. 27. The final share price will be the sum of the average of that stock’s closing share prices on Jan. 26, 2021, Jan. 27, 2021 and Jan. 28, 2021 and the amount of dividends paid on that stock during the life of the notes.

BMO Capital Markets Corp. is the agent. Raymond James will handle distribution.

Issuer:	Bank of Montreal
Issue:	Notes linked to Raymond James Analysts’ Best Picks for 2020
Underlying stocks:	Aaron’s, Inc. (Symbol: AAN), CVS Health Corp. (Symbol: CVS), CyrusOne Inc. (Symbol: CONE), EchoStar Corp. (Symbol: SATS), Fidelity National Information Services, Inc. (Symbol: FIS), HealthEquity, Inc. (Symbol: HQY), Invitation Homes Inc. (Symbol: INVH), Masco Corp. (Symbol: MAS), Pioneer Natural Resources Co. (Symbol: PXD), Polaris Inc. (Symbol: PII), Rapid7, Inc. (Symbol: RPD), salesforce.com, inc. (Symbol: CRM), TCF Financial Corp. (Symbol: TCF), Under Armour, Inc. (Symbol: UAA), United Parcel Service, Inc. (Symbol: UPS) and Zimmer Biomet Holdings, Inc. (ZBH); equally weighted
Amount:	$50,048,000
Maturity:	Feb. 1, 2021
Coupon:	0%
Price:	Par
Payout at maturity:	For each $1,000 principal amount, (a) $1,000 multiplied by (b) the basket level percentage – the sum of the weighted reference share performances – multiplied by (c) 97.8%; basket level percentage must exceed 102.25% in order for investors to receive more than par
Initial share prices:	Average of a stock’s average intraday prices on Jan. 23, Jan. 24 and Jan. 27; $61.4813 for Aaron’s; $71.7756 for CVS; $63.0533 for CyrusOne; $41.5202 for EchoStar; $148.0524 for Fidelity National; $70.7747 for HealthEquity; $31.2255 for Invitation Homes; $48.7479 for Masco; $139.4026 for Pioneer; $91.7546 for Polaris; $61.6526 for Rapid7; $182.4625 for salesforce; $44.2356 for TCF; $44.2356 for Under Armour; $44.2356 for UPS; $148.475 for Zimmer
Final share price:	Sum of the average of stock’s closing share prices on Jan. 26, 2021, Jan. 27, 2021 and Jan. 28, 2021 and the amount of dividends paid on that stock during the life of the notes
Pricing date:	Jan. 23
Settlement date:	Jan. 29
Agents:	BMO Capital Markets Corp. with distribution through Raymond James
Fees:	1.25%
Cusip:	06367WTZ6

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