Published on 7/3/2017 in the Prospect News Structured Products Daily.
New Issue: BMO prices $6.44 million notes tied to basket of 25 funds picked by Raymond James
By Marisa Wong
Morgantown, W.Va., July 3 – Bank of Montreal priced $6.44 million of notes due July 16, 2018 linked to a basket of closed-end funds, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of 25 closed-end funds selected in May by Raymond James & Associates, Inc.
The underlying funds are Morgan Stanley Asia Pacific Fund, Inc., Liberty All-Star Growth Fund, BlackRock Enhanced Equity Dividend Trust, BlackRock Energy and Resources Trust, BlackRock Science and Technology Trust, John Hancock Financial Opportunities Fund, Nuveen S&P 500 Buy-Write Income Fund, BlackRock Enhanced Capital and Income Fund, Inc., Duff & Phelps Global Utility Income Fund Inc., Eaton Vance Tax-Advantaged Global Dividend Fund, Eaton Vance Tax-Advantaged Global Dividend Opportunities Fund, Eaton Vance Tax-Managed Diversified Equity Income Fund, First Trust Dynamic Europe Equity Income Fund, First Trust Enhanced Equity Income Fund, The Gabelli Dividend & Income Trust, Guggenheim Enhanced Equity Income Fund, John Hancock Hedged Equity & Income Fund, Voya Global Equity Dividend and Premium Opportunity Fund, Nuveen Core Equity Alpha Fund, Lazard Global Total Return & Income Fund, Inc., Morgan Stanley Emerging Markets Fund, Inc., Royce Global Value Trust, Cohen & Steers Quality Income Realty Fund, Inc., Tekla World Healthcare Fund and Tri-Continental Corp. The Morgan Stanley Asia Pacific carries a weight of 1.14%, the Liberty All-Star a weight of 1.17%, the First Trust Enhanced a weight of 3.11%, the Guggenheim Enhanced a weight of 3.33%, the John Hancock Hedged a weight of 3.05%, the Nuveen Core a weight of 3.24%, the Lazard Global a weight of 1.8%, the Morgan Stanley Emerging Markets a weight of 1.94% and the Royce Global a weight of 1.22%. All other funds carry a weight of 5%.
Interest is payable quarterly beginning Oct. 16. The amount of each interest payment, if any, 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 of $1,000 plus 97.8% of the basket return.
Investors will receive less than par if the basket does not finish at or above 102.25% of par.
The initial share price of each fund will be determined over the 10 averaging dates around issuance, from June 23 through July 7. Likewise, the final share price will be determined over 10 valuation dates from June 27, 2018 to July 11, 2018.
BMO Capital Markets Corp. is the agent.
| Issuer: | Bank of Montreal
|
| Issue: | Notes
|
| Underlying funds: | Morgan Stanley Asia Pacific Fund, Inc., Liberty All-Star Growth Fund, BlackRock Enhanced Equity Dividend Trust, BlackRock Energy and Resources Trust, BlackRock Science and Technology Trust, John Hancock Financial Opportunities Fund, Nuveen S&P 500 Buy-Write Income Fund, BlackRock Enhanced Capital and Income Fund, Inc., Duff & Phelps Global Utility Income Fund Inc., Eaton Vance Tax-Advantaged Global Dividend Fund, Eaton Vance Tax-Advantaged Global Dividend Opportunities Fund, Eaton Vance Tax-Managed Diversified Equity Income Fund, First Trust Dynamic Europe Equity Income Fund, First Trust Enhanced Equity Income Fund, The Gabelli Dividend & Income Trust, Guggenheim Enhanced Equity Income Fund, John Hancock Hedged Equity & Income Fund, Voya Global Equity Dividend and Premium Opportunity Fund, Nuveen Core Equity Alpha Fund, Lazard Global Total Return & Income Fund, Inc., Morgan Stanley Emerging Markets Fund, Inc., Royce Global Value Trust, Cohen & Steers Quality Income Realty Fund, Inc., Tekla World Healthcare Fund and Tri-Continental Corp.; Morgan Stanley Asia Pacific with a weight of 1.14%, the Liberty All-Star a weight of 1.17%, the First Trust Enhanced a weight of 3.11%, the Guggenheim Enhanced a weight of 3.33%, the John Hancock Hedged a weight of 3.05%, the Nuveen Core a weight of 3.24%, the Lazard Global a weight of 1.8%, the Morgan Stanley Emerging Markets a weight of 1.94% and the Royce Global a weight of 1.22%; all other funds with a weight of 5%
|
| Amount: | $6.44 million
|
| Maturity: | July 16, 2018
|
| Coupon: | Payable quarterly beginning Oct. 16; amount of each interest payment, if any, will equal, sum of the dividend amounts for each of the reference shares multiplied by 97.8%
|
| Price: | Par
|
| Payout at maturity: | Par plus 97.8% times basket return
|
| Initial share prices: | For each fund, average of its average intra-day prices on 10 trading days ending July 7
|
| Final share prices: | For each fund, average of closing prices on 10 trading days ending July 11, 2018
|
| Pricing date: | June 23
|
| Settlement date: | June 30
|
| Agent: | BMO Capital Markets Corp. with Raymond James & Associates, Inc. handling distribution
|
| Fees: | 1.25% for Raymond James
|
| Cusip: | 06367TXH8
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
