New Issue: BMO sells $315,000 notes on Raymond James quality yield stock basket

By Marisa Wong

Morgantown, W.Va., Oct. 31 – Bank of Montreal priced $315,000 of notes due Oct. 30, 2020 linked to an equally weighted basket of 23 common stocks selected in September by Raymond James & Associates, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The underlying stocks are Aflac Inc., Best Buy Co., Inc., BGC Partners, Inc., Chubb Ltd., Chemical Financial Corp., Comcast Corp., CyrusOne Inc., CVS Health Corp., Delta Air Lines, Inc., Fastenal Co., Gilead Sciences, Inc., Hancock Whitney Corp., Ladder Capital Corp., Leggett & Platt, Inc., Marathon Petroleum Corp., Nasdaq, Inc., Old Republic International Corp., PacWest Bancorp, Plains GP Holdings, LP, PBF Energy Inc., Valero Energy Corp., Walmart Inc. and Weyerhaeuser Co.

The notes may pay a variable coupon. Interest, if any, is payable quarterly and will equal the sum of the dividend amounts for each of the reference shares multiplied by 98.6%.

For each reference share, the dividend amount is an amount in dollars equal to (a) $1,000 divided by the applicable initial share price multiplied by (b) the applicable reference share weighting multiplied by (c) 100% of the gross cash distributions per reference share declared by the applicable reference share issuer where the date that the applicable reference share has begun trading ex-dividend occurs during the relevant interest calculation period.

For each $1,000 principal amount of notes, the payout at maturity will be $1,000 multiplied by 98.6% multiplied by the basket level percentage. Because of the 98.6% participation rate, investors will receive less than par if the basket level percentage is less than 101.42%.

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

Issuer:	Bank of Montreal
Issue:	Quality yield stock basket-linked notes
Underlying stocks:	Aflac Inc. (Symbol: AFL), Best Buy Co., Inc. (Symbol: BBY), BGC Partners, Inc. (Symbol: BGCP), Chubb Ltd. (Symbol: CB), Chemical Financial Corp. (Symbol: CHFC), Comcast Corp. (Symbol: CMCSA), CyrusOne Inc. (Symbol: CONE), CVS Health Corp. (Symbol: CVS), Delta Air Lines, Inc. (Symbol: DAL), Fastenal Co. (Symbol: FAST), Gilead Sciences, Inc. (Symbol: GILD), Hancock Whitney Corp. (Symbol: HWC), Ladder Capital Corp. (Symbol: LADR), Leggett & Platt, Inc. (Symbol: LEG), Marathon Petroleum Corp. (Symbol: MPC), Nasdaq, Inc. (Symbol: NDAQ), Old Republic International Corp. (Symbol: ORI), PacWest Bancorp (Symbol: PACW), Plains GP Holdings, LP (Symbol: PAGP), PBF Energy Inc. (Symbol: PBF), Valero Energy Corp. (Symbol: VLO), Walmart Inc. (Symbol: WMT) and Weyerhaeuser Co. (Symbol: WY); equally weighted
Amount:	$315,000
Maturity:	Oct. 30, 2020
Coupon:	Sum of dividend amounts for each reference share multiplied by 98.6%, payable quarterly but may be zero
Dividend amount:	(a) $1,000 divided by applicable adjusted initial share price multiplied by (b) applicable reference share weighting multiplied by (c) 100% of gross cash distributions per reference share declared by applicable reference share issuer where date that applicable reference share has begun trading ex-dividend occurs during relevant interest calculation period
Initial share prices:	$44.47 for Aflac, $70.79 for Best Buy, $10.85 for BGC, $128.28 for Chubb, $49.08 for Chemical, $35.98 for Comcast, $62.27 for CyrusOne, $74.18 for CVS, $53.39 for Delta, $52.00 for Fastenal, $73.27 for Gilead, $41.85 for Hancock, $17.38 for Ladder, $38.28 for Leggett, $73.92 for Marathon, $80.72 for Nasdaq, $20.57 for Old Republic, $42.28 for PacWest, $23.53 for Plains, $43.22 for PBF, $92.76 for Valero, $97.15 for Walmart, $28.54 for Weyerhaeuser
Price:	Par
Payout at maturity:	$1,000 multiplied by 98.6% multiplied by basket level percentage
Pricing date:	Oct. 19
Settlement date:	Oct. 26
Agent:	BMO Capital Markets Corp. with distribution through Raymond James
Fees:	None
Cusip:	06367WDR1

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