Bank of Montreal European Equity Booster Principal At Risk Notes, Series 108 (USD) (F-Class), Due June 6, 2023

Transcription

1 A final base shelf prospectus containing important information relating to the securities described in this document has been filed with the securities regulatory authorities in each of the provinces and territories of Canada. A copy of the final base shelf prospectus, any amendment to the final base shelf prospectus and any applicable shelf prospectus supplement that has been filed, is required to be delivered with this document. This document does not provide full disclosure of all material facts relating to the securities offered. Investors should read the final base shelf prospectus, any amendment and any applicable shelf prospectus supplement for disclosure of those facts, especially risk factors relating to the securities offered, before making an investment decision. Bank of Montreal European Equity Booster Principal At Risk Notes, Series 108 (USD) (F-Class), Due June 6, Year Term INVESTMENT HIGHLIGHTS The Notes are designed to provide investors with the opportunity for an enhanced or boosted return without limiting the upside return potential on the Notes. The Principal Amount is NOT protected under these Notes. Issuer: Bank of Montreal. Medium Term: 5.5-year term to maturity. Linked to EURO STOXX 50 (EUR Price Return Version) 85.00% Reference Index: The EURO STOXX 50 Index (EUR Price Return Version) is a capitalizationweighted index of 50 stocks from 11 Eurozone countries: Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain. It captures approximately 60% of the free float market capitalization of the EURO STOXX Total Market Index, which in turn covers approximately 95% of the free float market capitalization of the represented countries.* : 85.00% where the Index Return is greater than or equal to 0% and equal to or less than 85.00% (equivalent to 11.83% per annum, compounded annually). Booster Level: 100% of (or an Index Return of 0%). Potential Excess Return Participation Rate: 100% participation where the Final Level is above the. Downside Participation: 100% participation where the Final Level is below the Booster Level. Daily Secondary Market: Provided by BMO Capital Markets (may be subject to limitations as described in the prospectus). The Notes will not be listed on any exchange or marketplace. Fundserv JHN7196 For more information, please contact your Investment Advisor * The dividend yield of the EURO STOXX 50 Index on November 7, 2017 was 3.23%, representing an aggregate dividend yield of approximately 19.11% compounded annually over the term of the Notes (assuming the dividend yield remains constant). An investment in the Notes does not represent a direct or indirect investment in any of the constituent securities that comprise the Reference Index. Holders have no right or entitlement to the dividends or distributions paid on such securities. Available Until: December 1, 2017 Issue Date: December 6, 2017 Maturity Date: June 6, 2023 Selling Concession: Nil Minimum Investment: US$2, November 10, 2017

2 ADDITIONAL DETAILS Issuer Bank of Montreal (the Bank ). Issuer Rating Moody s: A1; S&P: A+; DBRS: AA (long-term deposits > 1 year). Issue Price US$ per Note (the Principal Amount ) % where the Index Return is greater than or equal to 0.00% and equal to or less than 85.00%. Booster Level 100% of (or an Index Return of 0%). Participation Rate 100% participation where Final Level is above the. Payment at Maturity i. If the Final Level of the Reference Index is equal to or greater than the Booster Level on the Final Valuation Date, the Maturity Payment Amount on the Notes will be: US$100 + [US$100 x ( + Excess Return)] A Holder will only receive an Excess Return when the Index Return is greater than the on the Final Valuation Date, calculated as follows: (Index Return - ) x Participation Rate; ii. If the Index Return is negative and the Final Level of the Reference Index is below the Booster Level on the Final Valuation Date, the Maturity Payment Amount will equal the actual Index Return determined as follows: US$ (US$ x Index Return), subject to the Minimum Payment Amount of US$1.00 per Note. Downside Participation Maximum Payment Amount Minimum Payment Amount Currency Secondary Market/Early Trading Charge 100% participation where the Final Level is below the Booster Level. None. US$1.00 per Note. The Notes are denominated in U.S. dollars and all payments owing under the Notes will be made in U.S. dollars. Notwithstanding that the market prices for the constituent securities comprising the Reference Index are quoted in Euro, there will be no direct exposure to fluctuations in the foreign exchange rate between the Euro and the U.S. dollar under the Notes. The Notes will not be listed on any exchange or marketplace. BMO Capital Markets will use reasonable efforts under normal market conditions to provide a daily secondary market for the sale of the Notes through the order entry system operated by Fundserv, but reserves the right to elect not to do so in the future, in its sole and absolute discretion, without prior notice to Holders. No Early Trading Charge will apply if the Notes are sold prior to Maturity. Selling Concession There will be no selling concession paid for these Notes. 2

3 HOW DO THE NOTES WORK? The following examples show how the Index Return and Maturity Payment Amount would be calculated based on certain hypothetical values and assumptions set out below. These examples are for illustrative purposes only and should not be construed as an estimate or forecast of the performance of the Reference Index or the return that a Holder might realize on the Notes. Scenario 1 Negative Index Return (Final Level below Booster Level) Final Level = 2, = 85.00% Downside Participation = 100% where the Final Level is below the Booster Level = (2,100-3,500) / 3,500 = % (2) Maturity Payment Amount = US$ (US$ x %) = US$ US$40.00 = US$60.00 The Final Level is below, resulting in a negative Index Return for the Reference Index. Since the Final Level is below the Booster Level, a Holder will sustain a loss on the Notes. A Holder would receive payment of US$60.00 for each US$ Note on the Maturity Date (which is equivalent to a compounded annual loss of 8.87% on the Notes). Scenario 2 Positive Index Return (Final Level between Booster Level and ) Final Level = 3, = 85.00% Downside Participation = 100% where the Final Level is below the Booster Level = (3,850 3,500) /3,500 = 10.00% (2) Excess Return = 0% (3) Maturity Payment Amount = US$ (US$ x (85.00% + 0%)) = US$ The Final Level is above the Booster Level for the Notes. As the of 85.00% is greater than the Index Return of 10%, a Holder would receive a Maturity Payment Amount of US$ per Note (which is equivalent to a compounded annual return of 11.83% on the Notes). The above examples show how the Index Return and Maturity Payment Amount would be calculated based on certain hypothetical values and assumptions set out above. These examples are for illustrative purposes only and should not be construed as an estimate or forecast of the performance of the Reference Index or the return that a Holder might realize on the Notes. 3

4 Scenario 3 Positive Index Return (Final Level above Booster Level and Index Return above ) Final Level = 6, = 85.00% Downside Participation = 100% where the Final Level is below the Booster Level = (6,650 3,500) /3,500 = 90.00% (2) Excess Return = (90.00% %) x 100% = 5.00% (3) Maturity Payment Amount = US$ (US$ x (85.00% %)) = US$ The Final Level is above the Booster Level for the Notes. As the Index Return of 90.00% exceeds the of 85.00%, a Holder would receive a Maturity Payment Amount of US$ per Note that includes an Excess Return (which is equivalent to a compounded annual return of 12.38% on the Notes). The above examples show how the Index Return and Maturity Payment Amount would be calculated based on certain hypothetical values and assumptions set out above. These examples are for illustrative purposes only and should not be construed as an estimate or forecast of the performance of the Reference Index or the return that a Holder might realize on the Notes. 4

5 DISCLAIMER This document should be read in conjunction with the Bank s short form base shelf prospectus dated May 17, 2016 (the Base Shelf Prospectus ), Prospectus Supplement No. 1 dated May 17, 2016 (the Product Supplement ) and Pricing Supplement No. 141 dated November 10, 2017 (the Pricing Supplement ). A Holder s return on the Notes will depend on the price performance of the Reference Index over the term of the Notes. Bank of Montreal does not guarantee that a Holder will receive an amount equal to or greater than his or her principal investment in the Notes and does not guarantee that any return will be paid on the Notes at Maturity other than the Minimum Payment Amount. Since the Notes are not protected and the Principal Amount will be at risk, it is possible that a Holder could lose some or substantially all of his or her principal investment in the Notes. See Certain Risk Factors in the Base Shelf Prospectus, Additional Risk Factors Specific to Enhanced Return Notes in the Product Supplement and Terms of the Offering Risk Factors in the Pricing Supplement. Prospective investors should carefully consider all of the information set forth in the Pricing Supplement, Product Supplement and the Base Shelf Prospectus (collectively, the Prospectus ) and, in particular, should evaluate the specific risk factors set forth under Suitability for Investment and Risk Factors in the Pricing Supplement. BMO Nesbitt Burns Inc., one of the Dealers, is a wholly-owned subsidiary of the Bank. As a result, the Bank is a related issuer of BMO Nesbitt Burns Inc. for the purposes of National Instrument Underwriting Conflicts. See Plan of Distribution in the Base Shelf Prospectus. The Notes have not been and will not be rated by any credit rating organization. A rating is not a recommendation to buy, sell or hold investments, and may be subject to revision or withdrawal at any time by the relevant rating agency. The Notes will not be deposits that are insured under the Canada Deposit Insurance Corporation Act or any other deposit insurance regime designed to ensure the payment of all or a portion of a deposit upon the insolvency of the deposit taking financial institution. See Description of the Notes Rank; No Deposit Insurance in the Product Supplement. The above summary is for information purposes only and does not constitute an offer to sell or a solicitation to purchase Notes. The offering and sale of Notes may be prohibited or restricted by laws in certain jurisdictions. Notes may only be purchased where they may be lawfully offered for sale and only through individuals qualified to sell them. Unless the context otherwise requires, terms not defined herein will have the meaning ascribed thereto in the Pricing Supplement. A copy of the Pricing Supplement, the Product Supplement and the Base Shelf Prospectus can be obtained at BMO (M-bar roundel symbol) and BMO Capital Markets are registered trademarks of the Bank of Montreal used under license. EURO STOXX 50 Index is the intellectual property (including registered trademarks) of STOXX and/or its licensors, which is used under license. The Notes based on the EURO STOXX 50 Index are in no way sponsored, endorsed, sold or promoted by STOXX and its licensors and neither STOXX nor its licensors shall have any liability with respect thereto. 5