Obligation Montreal Bank 1.1% ( US06367WL842 ) en USD

Montreal Bank

100 % ▲

Canada

US06367WL842 ( en USD )

1.1% par an ( paiement semestriel )

02/06/2023 - Obligation échue

Prospectus brochure de l'obligation Bank of Montreal US06367WL842 en USD 1.1%, échue

1 000 USD

51 700 000 USD

06367WL84

N/A

Aa2 ( Haute qualité )

La Banque de Montréal (BMO) est une institution financière multinationale canadienne offrant une vaste gamme de services bancaires de détail, de gestion de patrimoine, de marchés des capitaux et de services bancaires aux entreprises à l'échelle mondiale.

L'Obligation émise par Montreal Bank ( Canada ) , en USD, avec le code ISIN US06367WL842, paye un coupon de 1.1% par an.
Le paiement des coupons est semestriel et la maturité de l'Obligation est le 02/06/2023

L'Obligation émise par Montreal Bank ( Canada ) , en USD, avec le code ISIN US06367WL842, a été notée Aa2 ( Haute qualité ) par l'agence de notation Moody's.

6/4/2020
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424B2 1 g61200424b2.htm RLN 222

Registration Statement No. 333-237342
Filed Pursuant to Rule 424(b)(2)

Pricing Supplement dated June 1, 2020 to the Prospectus Supplement and Prospectus dated April 20, 2020
US$51,700,000
Senior Medium-Term Notes, Series F
Floating Rate Notes Linked to CMS2, Due June 2, 2023
Issuer:
Bank of Montreal
Aggregate Principal Amount:
$51,700,000
Reference Rate:
The 2-Year U.S. Dollar Constant Maturity Swap Rate ("CMS2"), which appears on Reuters page
ICESWAP1 as of 11:00 A.M., New York City time.
Trade Date:
June 1, 2020
Settlement Date (Original Issue
June 3, 2020
Date):
Interest Determination Dates:
Each interest determination date will occur on the second U.S. Government Securities Business Day
prior to each quarterly interest period.
Maturity Date:
June 2, 2023, resulting in a term to maturity of approximately three years.
Minimum Denominations:
US$1,000 and integral multiples of US$1,000 in excess of $1,000
Original Public Offering Price (Issue
100% of the principal amount
Price):
Interest Rate Per Annum:
The Reference Rate level, as determined on the relevant interest determination date, subject to the
Interest Rate Floor.
Interest on the Notes will accrue on the basis of a 360-day year of twelve 30-day months.
Interest Rate Floor:
1.10%
Interest Payment Dates:
Interest is payable quarterly in arrears on March 3, June 3, September 3 and December 3 of each year,
commencing September 3, 2020 and ending on the maturity date of June 2, 2023. See "Specific Terms
of the Notes--Interest" below.
Interest Payment:
The interest payable on each interest payment date will equal the principal amount multiplied by the
interest rate.
Quarterly Interest Period:
From and including an interest payment date to but excluding the immediately following interest
payment date or the maturity date, as the case may be; provided however the first quarterly interest
period shall be from and including the original issue date to but excluding the immediately following
interest payment date.
Payment at Maturity:
Subject to our credit risk, you will receive at maturity the principal amount and the final interest
payment.
Clearance and Settlement:
DTC global (including through its indirect participants Euroclear and Clearstream, as described under
"Description of Debt Securities We May Offer--Legal Ownership and Book-Entry Issuance" in the
accompanying prospectus).
CUSIP No.:
06367WL84
Investing in the notes involves risks, including those described in the "Selected Risk Considerations" section beginning on page P-2 of
this pricing supplement and the "Risk Factors" section beginning on page S-1 of the accompanying prospectus supplement and on page 8 of
the accompanying prospectus. In particular, please note that all payments on the notes are subject to our credit risk.
Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these notes or
passed upon the accuracy of this pricing supplement, the prospectus supplement or the prospectus. Any representation to the contrary is a
criminal offense.
The notes will be our unsecured obligations and will not be savings accounts or deposits that are insured by the United States Federal Deposit
Insurance Corporation, the Deposit Insurance Fund, the Canada Deposit Insurance Corporation or any other governmental agency or
instrumentality or other entity.
We expect to deliver the notes through the facilities of The Depository Trust Company on June 3, 2020.
On the date of this pricing supplement, the estimated initial value of the notes was $988.06 per $1,000 in principal amount. As discussed in
more detail in this pricing supplement, the actual value of the notes at any time will reflect many factors and cannot be predicted with accuracy.
The public offering price will include accrued interest from June 3, 2020, if settlement occurs after that date. BMOCM will purchase the
notes from us on the original issue date at a price that is equal to 99.75% of the principal amount.
BMO CAPITAL MARKETS

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Additional Terms of the Notes

You should read this pricing supplement together with the prospectus supplement dated April 20, 2020 and the prospectus
dated April 20, 2020. This pricing supplement, together with the documents listed below, contains the terms of the notes and
supersedes all other prior or contemporaneous oral statements as well as any other written materials including preliminary or indicative
pricing terms, correspondence, trade ideas, structures for implementation, sample structures, fact sheets, brochures or other educational
materials of ours or the agent. You should carefully consider, among other things, the matters set forth in "Selected Risk
Considerations" below, as the notes involve risks not associated with conventional debt securities. We urge you to consult your
investment, legal, tax, accounting and other advisers before you invest in the notes.

You may access these documents on the SEC website at www.sec.gov as follows (or if such address has changed, by
reviewing our filings for the relevant date on the SEC website):

·
Prospectus supplement dated April 20, 2020:
https://www.sec.gov/Archives/edgar/data/927971/000119312520112249/d908040d424b5.htm

·
Prospectus dated April 20, 2020:
https://www.sec.gov/Archives/edgar/data/927971/000119312520112240/d903160d424b2.htm

Our Central Index Key, or CIK, on the SEC website is 927971. As used in this pricing supplement, "we," "us" or "our" refers
to Bank of Montreal.

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Selected Risk Considerations

An investment in the notes involves significant risks, as discussed under "Risk Factors" in the pricing supplement, and in this
section.

·
Payments on the notes are subject to our credit risk, and changes in our credit ratings may adversely affect the market
value of the notes. The notes are our senior unsecured debt securities. The interest payments and the payment at maturity are
dependent upon our ability to repay our obligations at those times. No assurance can be given as to what our financial condition
will be at any time during the term of the notes.

·
Potential conflicts. -- We and our affiliates play a variety of roles in connection with the issuance of the notes, including acting as
calculation agent. In performing these duties, the economic interests of the calculation agent and other affiliates of ours are
potentially adverse to your interests as an investor in the notes. We or one or more of our affiliates may also engage in trading
activities related to CMS2 that are not for your account or on your behalf. We or one or more of our affiliates may also issue or
underwrite other securities or financial or derivative instruments with returns linked or related to changes in the level of the
Reference Rate. By introducing competing products into the marketplace in this manner, we or one or more of our affiliates could
adversely affect the market value of the notes.

·
Hedging and trading activities. -- We expect to enter into arrangements to hedge the market risks associated with our obligation
to pay the amounts due under the notes. We may seek competitive terms in entering into the hedging arrangements for the notes,
but are not required to do so, and we may enter into such hedging arrangements with one of our subsidiaries or affiliates. This
hedging activity is expected to result in a profit to those engaging in the hedging activity, which could be more or less than initially
expected, but which could also result in a loss for the hedging counterparty. These trading and hedging activities may present a
conflict of interest between your interest in the notes and the interests we and our affiliates may have in our and our affiliates'
proprietary accounts, in facilitating transactions for our and our affiliates' customers, and in accounts under our and our affiliates'
management. These trading and underwriting activities could affect secondary trading in the notes in a manner that would be
adverse to your interests as a beneficial owner of the notes.

·
Our initial estimated value of the notes is lower than the price to public. -- Our initial estimated value of the notes is only an
estimate, and is based on a number of factors. The price to public of the notes exceeds our initial estimated value, because costs
associated with offering, structuring and hedging the notes are included in the price to public, but are not included in the estimated
value. These costs include the profits that we and our affiliates expect to realize for assuming the risks in hedging our obligations
under the notes and the estimated cost of hedging these obligations.

·
Our initial estimated value does not represent any future value of the notes, and may also differ from the estimated value of
any other party. -- Our initial estimated value of the notes as of the date of this pricing supplement was derived using our
internal pricing models. This value is based on market conditions and other relevant factors, which include volatility of the
Reference Rate and interest rates. Different pricing models and assumptions could provide values for the notes that are greater than
or less than our initial estimated value. In addition, market conditions and other relevant factors after the trade date are expected to
change, possibly rapidly, and our assumptions may prove to be incorrect. After the trade date, the value of the notes could change
dramatically due to changes in market conditions, our creditworthiness, and the other factors set forth in this pricing supplement.
These changes are likely to impact the price, if any, at which we or BMOCM would be willing to purchase the notes from you in
any secondary market transactions. Our initial estimated value does not represent a minimum price at which we or our affiliates
would be willing to buy your notes in any secondary market at any time.

·
The terms of the notes were not determined by reference to the credit spreads for our conventional fixed-rate debt. -- To
determine the terms of the notes, we used an internal funding rate that represents a discount from the credit spreads for our
conventional fixed-rate debt. As a result, the terms of the notes are less favorable to you than if we had used a higher funding rate.

·
Lack of liquidity. -- The notes will not be listed on any securities exchange. BMOCM may offer to purchase the notes in the
secondary market, but is not required to do so. Even if there is a secondary market, it may not provide enough liquidity to allow
you to trade or sell the notes easily. Because other dealers are not likely to make a secondary market for the notes, the price at
which you may be able to trade your notes is likely to depend on the price, if any, at which BMOCM is willing to buy the notes.

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·
Many economic and market factors will influence the value of the notes. -- In addition to the level of the Reference Rate and
interest rates on any trading day, the value of the notes will be affected by a number of economic and market factors that may
either offset or magnify each other, including:

o
time to maturity of the notes;
o
general interest and yield rates in the market;
o
other economic, financial, political, regulatory, or judicial events; and
o
the creditworthiness of the Issuer, including actual or anticipated downgrades in its credit ratings.

·
The interest payments will be based on the level of the Reference Rate on each interest determination date. - The interest
payments will be based on the level of the Reference Rate on each interest determination date. As a result, the level of the
Reference Rate on any other date will not be taken into account in determining the interest payments you receive. Accordingly,
even if the Reference Rate increases substantially prior to an interest determination date, but then decreases on that interest
determination date, your interest payment in respect of that interest determination date will be limited to the corresponding
Reference Rate level.

·
Uncertainty about the future of LIBOR may affect CMS rates in a way that adversely affects the return on and the value of
the notes. -- A CMS rate, such as CMS 2, is a market rate for the fixed leg of a fixed-for-floating interest rate swap, where the
floating leg is based on 3-month U.S. dollar LIBOR. As a result, CMS rates are significantly influenced by 3-month U.S. dollar
LIBOR and expectations about future levels of 3-month U.S. dollar LIBOR. On July 27, 2017, the Chief Executive of the U.K.
Financial Conduct Authority (the "FCA"), which regulates LIBOR, announced that the FCA intends to stop persuading or
compelling banks to submit rates for the calculation of LIBOR to the LIBOR administrator. The announcement indicates that the
continuation of LIBOR on the current basis cannot and will not be guaranteed after 2021. It is impossible to predict whether and to
what extent banks will continue to provide LIBOR submissions to the administrator of LIBOR, whether LIBOR rates will cease to
be published or supported before or after 2021 or whether any additional reforms to LIBOR may be enacted in the U.K. or
elsewhere. It is also impossible to predict the impact of any LIBOR-related developments on the method of calculation or the level
of CMS2. At this time, a complete consensus does not exist as to what rate or rates may become accepted alternatives to LIBOR,
including for purposes of the interest rate swaps underlying the Reference Rate, and it is impossible to predict the effect of any
such alternatives on the value of securities, such as the notes, that are linked to CMS rates. Any changes to 3-month U.S. dollar
LIBOR or the calculation of CMS rates, and any uncertainty at what these changes may be, may affect CMS rates in a way that
adversely affects your return on and value of the notes.

·
The manner in which CMS rates are calculated may change in the future. -- The method by which CMS rates are calculated
may change in the future, as a result of governmental actions, actions by the publisher of CMS rates or otherwise. We cannot
predict whether the method by which CMS rates are calculated will change or what the impact of any such change might be. Any
such change could affect CMS rates in a way that has a significant adverse effect on the notes.

·
You must rely on your own evaluation of the merits of an investment linked to the Reference Rate. -- In the ordinary course
of their businesses, our affiliates from time to time may express views on expected movements in the level of the Reference Rate
and related interest rates, and may do so in the future. One or more of our affiliates have published, and in the future may publish,
research reports that express views on the expected movement of the Reference Rate. However, these views are subject to change
from time to time. Moreover, other professionals who deal in the markets relating to the Reference Rate at any time may have
significantly different views from those of our affiliates. You are encouraged to derive information concerning the Reference Rate
from multiple sources, and you should not rely on the views expressed by our affiliates.

Neither the offering of the notes nor any views which our affiliates from time to time may express in the ordinary course of their
businesses constitutes a recommendation as to the merits of an investment in the notes.

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Specific Terms of the Notes

The notes are part of a series of our senior debt securities called Senior Medium-Term Notes, Series F, and therefore, this
pricing supplement (the "pricing supplement"), should be read together with the accompanying prospectus supplement and prospectus,
each dated April 20, 2020. Terms used but not defined in this pricing supplement have the meanings given them in the accompanying
prospectus or accompanying prospectus supplement, unless the context requires otherwise.

In this section, references to "holders" mean those who own the notes registered in their own names, on the books that we or
the trustee maintain for this purpose, and not those who own beneficial interests in the notes registered in street name or in the notes
issued in book-entry form through The Depository Trust Company or another depositary. Owners of beneficial interests in the notes
should read the section entitled "Description of the Notes We May Offer--Legal Ownership" in the accompanying prospectus
supplement and "Description of Debt Securities We May Offer--Legal Ownership and Book-Entry Issuance" in the accompanying
prospectus.

The notes are part of a series of senior debt securities entitled "Senior Medium-Term Notes, Series F" (the "medium-term
notes") that we may issue from time to time under the senior indenture, dated January 25, 2010, between Bank of Montreal and Wells
Fargo Bank, National Association, as trustee (as amended and supplemented to date). This pricing supplement summarizes specific
financial and other terms that apply to the notes. Terms that apply generally to our medium-term notes are described in "Description of
the Notes We May Offer" in the accompanying prospectus supplement. The terms described herein supplement those described in the
accompanying prospectus and the accompanying prospectus supplement, and, if the terms described here are inconsistent with those
described in those documents, the terms described herein are controlling.

Please note that the information about the price to the public and the net proceeds to Bank of Montreal on the front cover of
this pricing supplement relates only to the initial sale of the notes. If you have purchased the notes in a market-making transaction after
the initial sale, information about the price and date of sale to you will be provided in a separate confirmation of sale.

We describe particular terms of the notes in more detail below.

Interest

The interest payment on each interest payment date will equal the principal amount of your notes multiplied by the interest
rate, subject to the Interest Rate Floor. Interest payments will be calculated on the basis of a 360-day year, consisting of twelve 30-day
months.

In the event that an interest payment date or the Maturity Date falls on a day other than a business day, principal and/or
interest will be paid on the next succeeding business day and no interest on such payment shall accrue for the period from and after
such interest payment date or Maturity Date, as the case may be, to such next succeeding business day.

Interest will be payable to holders of record on the third business day before each interest payment date. However, the final
interest payment will be paid to the person entitled to receive the principal amount of the notes.

The Reference Rate

The Reference Rate, CMS2, is a constant maturity swap rate that measures the fixed rate of interest payable on a hypothetical
fixed-for-floating U.S. dollar interest rate swap transaction with a maturity of 2 years. In such a hypothetical swap transaction, the fixed
rate of interest, payable semi-annually on the basis of a 360-day year consisting of twelve 30-day months, is exchangeable for a
floating 3-month LIBOR-based payment stream that is payable quarterly on the basis of the actual number of days elapsed during a
quarterly period in a 360-day year. "LIBOR" is the London Interbank Offered Rate and is a common rate of interest used in the swaps
industry.

The notes will reference the rate appearing on Reuters Page "ICESWAP1" (or any successor page) as of 11:00 A.M., New
York City time, on each interest determination date.

If on an interest determination date, CMS2 is not quoted on the page indicated above, then CMS2 will be determined in
accordance with the provisions set forth in the prospectus supplement under the caption "Description of the Notes We May Offer--
Interest--Floating Rate Notes--CMS Rate Notes."

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Calculation Agent

The Calculation Agent is BMO Capital Markets Corp. ("BMOCM").

U.S. Government Securities Business Day

Any day except a Saturday, a Sunday, or a day on which The Securities Industry and Financial Markets Association
recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in U.S. government
securities.

Business Day

Any day other than a Saturday, Sunday, legal holiday or day on which banking institutions are authorized or obligated by law
or executive order to close in New York City.

Not Subject to Bail-in

The notes will not be subject to conversion into our common shares or the common shares of any of our affiliates under
subsection 39.2(2.3) of the Canada Deposit Insurance Corporation Act (the "CDIC Act").

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Supplemental Tax Considerations

Supplemental Canadian Tax Considerations

For a discussion of the Canadian federal income tax considerations relating to an investment in the notes, please see the
section of the prospectus supplement, "Certain Income Tax Consequences Certain Canadian Income Tax Considerations."

Supplemental U.S. Federal Income Tax Considerations

We intend to take the position that the notes will be treated as variable rate debt instruments providing for stated interest at a
qualified floating rate for U.S. federal income tax purposes. For a discussion of the U.S. federal income tax considerations relating to
an investment in the notes, please see the section of the prospectus supplement, "Certain Income Tax Consequences United States
Federal Income Tax Considerations."

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Supplemental Plan of Distribution (Conflicts of Interest)

BMOCM will purchase the notes from us on the original issue date at a price set forth on the cover page of this document.
BMOCM has informed us that, as part of its distribution of the notes, it will reoffer the notes to other dealers who will sell them. Each
such dealer, or additional dealer engaged by a dealer to whom BMOCM reoffers the notes, will purchase the notes at an agreed
discount to the initial price to public.

We own, directly or indirectly, all of the outstanding equity securities of BMOCM, the agent for this offering. In accordance
with FINRA Rule 5121, BMOCM may not make sales in this offering to any of its discretionary accounts without the prior written
approval of the customer.

We reserve the right to withdraw, cancel or modify the offering of the notes and to reject orders in whole or in part. You may
cancel any order for the notes prior to its acceptance.

You should not construe the offering of the notes as a recommendation of the merits of acquiring an investment linked to the
Reference Rate or as to the suitability of an investment in the notes.

BMOCM may, but is not obligated to, make a market in the notes. BMOCM will determine any secondary market prices that
it is prepared to offer in its sole discretion.

We may use this pricing supplement in the initial sale of the notes. In addition, BMOCM or another of our affiliates may use
this pricing supplement in market-making transactions in any notes after their initial sale. Unless BMOCM, or we inform you
otherwise in the confirmation of sale, this pricing supplement is being used by BMOCM in a market-making transaction.

For a period of approximately three months following issuance of the notes, the price, if any, at which we or our affiliates
would be willing to buy the notes from investors, and the value that BMOCM may also publish for the notes through one or more
financial information vendors and which could be indicated for the notes on any brokerage account statements, will reflect a temporary
upward adjustment from our estimated value of the notes that would otherwise be determined and applicable at that time. This
temporary upward adjustment represents a portion of the hedging profit that we or our affiliates expect to realize over the term of the
notes. The amount of this temporary upward adjustment will decline to zero on a straight-line basis over the three-month period.

The notes are not intended to be offered, sold or otherwise made available to, and should not be offered, sold or otherwise
made available to, any retail investor in the European Economic Area (the "EEA") and the United Kingdom. For these purposes, the
expression "offer" includes the communication in any form and by any means of sufficient information on the terms of the offer and
the notes to be offered so as to enable an investor to decide to purchase or subscribe the notes, and a "retail investor" means a person
who is one (or more) of: (a) a retail client, as defined in point (11) of Article 4(1) of Directive 2014/65/EU, as amended ("MiFID II");
or (b) a customer, within the meaning of Directive (EU) 2016/97, as amended, where that customer would not qualify as a professional
client as defined in point (10) of Article 4(1) of MiFID II; or (c) not a qualified investor as defined in Regulation (EU) 2017/1129 (the
"Prospectus Regulation"). Consequently, no key information document required by Regulation (EU) 1286/2014, as amended (the
"PRIIPs Regulation"), for offering or selling the notes or otherwise making them available to retail investors in the EEA and the U.K.
has been prepared, and therefore, offering or selling the notes or otherwise making them available to any retail investor in the EEA and
the U.K. may be unlawful under the PRIIPs Regulation.

Additional Information Relating to the Estimated Initial Value of the Notes

Our estimated initial value of the notes on the date of this pricing supplement that is set forth on the cover page of this pricing
supplement equals the sum of the values of the following hypothetical components:

·
a fixed-income debt component with the same tenor as the notes, valued using our internal funding rate for structured notes;
and

·
one or more derivative transactions relating to the economic terms of the notes.

The internal funding rate used in the determination of the initial estimated value generally represents a discount from the
credit spreads for our conventional fixed-rate debt. The value of these derivative transactions are derived from our internal pricing
models. These models are based on factors such as the traded market prices of comparable derivative instruments and on other inputs,
which include volatility, interest rates and other factors. As a result, the estimated initial value of the notes on the trade date was
determined based on market conditions at that time.
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