New Issue: Bank of Montreal prices $40,000 11% reverse exchangeables on lululemon

By Toni Weeks

San Diego, Feb. 14 - Bank of Montreal priced $40,000 of 11% annualized reverse exchangeable notes due May 15, 2012 linked to lululemon athletica 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 lululemon stock closes below the trigger price - 75% 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 shares of lululemon 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:	lululemon athletica inc. (Symbol: LULU)
Amount:	$40,000
Maturity:	May 15, 2012
Coupon:	11%, payable monthly
Price:	Par
Payout at maturity:	If lululemon stock closes below trigger price during life of notes and final share price is less than initial share price, a number of lululemon shares equal to $1,000 divided by initial share price or equivalent amount in cash; otherwise, par
Initial share price:	$65.33
Trigger price:	$49.00, 75% of initial share price
Pricing date:	Feb. 10
Settlement date:	Feb. 15
Agent:	BMO Capital Markets Corp.
Fees:	1.75%
Cusip:	06366Q2J5

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