New Issue: Bank of Montreal prices $1 million 7% reverse exchangeables on Financial Select fund

By Toni Weeks

San Diego, Jan. 11 - Bank of Montreal priced $1 million of 7% reverse exchangeable notes due Jan. 11, 2013 linked to the Financial Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

The payout at maturity will be par unless the fund closes below the trigger price - 72% of the initial price - on the final valuation date, in which case the payout will be a number of shares of the fund equal to $1,000 divided by the initial 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 fund:	Financial Select Sector SPDR
Amount:	$1 million
Maturity:	Jan. 11, 2013
Coupon:	7%, payable monthly
Price:	Par
Payout at maturity:	If the fund closes below trigger price on the final valuation date, Jan. 8, 2013, number of shares equal to $1,000 divided by initial price or equivalent amount in cash; otherwise, par
Initial price:	$13.46
Trigger price:	$9.69, 72% of initial price
Pricing date:	Jan. 9
Settlement date:	Jan. 12
Agent:	BMO Capital Markets Corp.
Fees:	1%
Cusip:	06366QW94

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