New Issue: Bank of Montreal prices $250,000 18% reverse exchangeable notes tied to Northern Oil

By Susanna Moon

Chicago, Sept. 22 - Bank of Montreal priced $250,000 of 18% annualized reverse exchangeable notes due Dec. 23, 2011 linked to Northern Oil and Gas, 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 Northern Oil stock closes below the trigger price - 63% of the initial share price - during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Northern Oil shares equal to $1,000 divided by the initial share price or, at the issuer's option, the cash equivalent.

BMO Capital Markets Corp. is the agent.

Issuer:	Bank of Montreal
Issue:	Reverse exchangeable notes
Underlying stock:	Northern Oil and Gas, Inc. (Symbol: NOG)
Amount:	$250,000
Maturity:	Dec. 23, 2011
Coupon:	18%, payable monthly
Price:	Par
Payout at maturity:	If Northern Oil stock ever closes below trigger price and finishes at a loss, 47.1921 Northern Oil shares; otherwise, par
Initial share price:	$21.19
Trigger price:	$13.35, or 63% of initial share price
Pricing date:	Sept. 20
Settlement date:	Sept. 23
Agent:	BMO Capital Markets Corp.
Fees:	2%
Cusip:	06366QXQ5

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