Bank of Montreal plans autocallable reverse exchangeables linked to iShares Russell 2000 fund

By Jennifer Chiou

New York, Dec. 2 - Bank of Montreal plans to price 10.25% to 12.25% autocallable reverse exchangeable notes due Dec. 30, 2013 linked to the iShares Russell 2000 index fund, according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable quarterly.

The notes will be automatically called at par if the closing fund price is greater than or equal to the initial price on any of the quarterly call dates.

If the notes are not called, the payout at maturity will be par unless the fund closes below the trigger price - 60% of the initial price - during the life of the notes and the final price is less than the initial price, in which case the payout will be a number of fund shares equal to $1,000 divided by the initial price or, at the issuer's option, a cash amount equal to the value of those shares.

The notes (Cusip: 06366QQ67) will price on Dec. 22 and settle on Dec. 28.

BMO Capital Markets Corp. is the agent.

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