New Issue: Bank of Montreal prices $20,000 12% reverse exchangeables on International Paper

By Toni Weeks

San Diego, Oct. 28 - Bank of Montreal priced $20,000 of reverse exchangeable notes due Jan. 31, 2012 linked to the common stock of International Paper Co., according to a 424B2 filing with the Securities and Exchange Commission.

The three-month notes carry a coupon of 12% per year. Interest is payable monthly.

The payout at maturity will be par unless International Paper stock closes below the trigger price - 80% of the initial share price - on the valuation date, in which case the payout will be a number of shares of International Paper stock equal to $1,000 divided by the initial share price or, at the issuer's option, a cash amount equal to the value of those shares.

BMO Capital Markets Corp. is the agent.

Issuer:	Bank of Montreal
Issue:	Reverse exchangeable notes
Underlying stock:	International Paper Co. (Symbol: IP)
Amount:	$20,000
Maturity:	Jan. 31, 2012
Coupon:	12% per year, payable monthly
Price:	Par
Payout at maturity:	If International Paper stock closes below trigger price on Jan. 26, 2012, a number of shares of International Paper stock equal to $1,000 divided by initial share price or equivalent amount in cash; otherwise, par
Initial share price:	$26.58
Trigger price:	$21.26, 80% of initial share price
Pricing date:	Oct. 26
Settlement date:	Oct. 31
Agent:	BMO Capital Markets Corp.
Fees:	1.75%
Cusip:	06366QB22

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