Bank of Montreal to price contingent risk absolute return notes linked to iShares MSCI EAFE

By Toni Weeks

San Luis Obispo, Calif., July 16 - Bank of Montreal plans to price 0% contingent risk absolute return notes due July 30, 2015 linked to the iShares MSCI EAFE index fund, according to a 424B2 filing with the Securities and Exchange Commission.

A barrier event occurs if the fund ever closes below the barrier level on any trading day during the life of the notes. The barrier level will be 67% to 71% of the initial level, with the exact percentage to be set at pricing.

If the fund finishes above the initial level, the payout at maturity will be par plus the gain, subject to a maximum downside redemption amount of $1,290 to $1,330 per $1,000 principal amount of notes.

If the fund stays flat or falls but a barrier event never occurs, the payout will be par plus the absolute value of the fund return.

Otherwise, investors will be fully exposed to losses.

BMO Capital Markets Corp. is the agent.

The notes (Cusip: 06366RQB4) are expected to price July 25 and settle July 30.

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