New Issue: Bank of Montreal prices $28,000 14.75% reverse exchangeables linked to Delta Air Lines

By Toni Weeks

San Diego, June 29 - Bank of Montreal priced $28,000 of annualized 14.75% reverse exchangeable notes due Sept. 30, 2011 linked to the common stock of Delta Air Lines, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

The payout at maturity will be par unless Delta shares close below the trigger price - 80% 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 Delta shares equal to $1,000 divided by the initial share price or, at the issuer's option, the cash value of those shares.

BMO Capital Markets Corp. is the agent.

Issuer:	Bank of Montreal
Issue:	Reverse exchangeable notes
Underlying stock:	Delta Air Lines, Inc. (Symbol: DAL)
Amount:	$28,000
Maturity date:	Sept. 30, 2011
Coupon:	14.75%, payable monthly
Price:	Par
Payout at maturity:	Par, unless Delta shares fall below $7.73, 80% of initial share price, during life of notes and finish below initial share price, in which case number of Delta shares equal to $1,000 divided by initial share price or value of those shares in cash
Initial price:	$9.66
Trigger price:	$7.73, 80% of initial
Pricing date:	June 27
Settlement date:	June 30
Agent:	BMO Capital Markets Corp.
Fees:	1.75%
Cusip:	06366QPK7

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