Bank of Montreal plans 19% reverse exchangeables linked to Spreadtrum

By Toni Weeks

San Diego, June 1 - Bank of Montreal plans to price 19% annualized reverse exchangeable notes due Sept. 20, 2011 linked to Spreadtrum Communications, Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

The payout at maturity will be par unless Spreadtrum stock closes below the trigger price - 70% of the initial share price - during the life of the notes and the final share price is less than the initial share price, in which case the payout will be a number of Spreadtrum shares 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.

The notes (Cusip: 06366QLW5) are expected to price June 15 and settle June 20.

BMO Capital Markets Corp. is the agent.

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