Bank of Montreal to price Raymond James Oil Focus equity-linked notes

By Marisa Wong

Morgantown, W.Va., July 14 – Bank of Montreal plans to price 0% Raymond James Oil Focus equity-linked notes due July 27, 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., Newfield Exploration Co., Occidental Petroleum Corp., Patterson-UTI Energy, Inc., Pioneer Natural Resources Co., RPC, Inc., RSP Permian, Inc., Superior Energy Services, Inc. and Total SA.

Initially, each reference share will constitute 1/14th of the basket with an aggregate value of $71.4286 ($1,000 divided by 14). Accordingly, the number of shares of each reference share will be calculated by dividing $71.4286 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 – July 22, July 25 and July 26.

For each stock, its final share price will be the average of its closing share prices on July 20, 2018, July 23, 2018 and July 24, 2018.

BMO Capital Markets Corp. is the agent.

The notes will settle July 29.

The Cusip number is 06367TGL8.

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