Bank of Montreal plans 14% reverse exchangeables linked to Abercrombie

By Toni Weeks

San Diego, May 16 - Bank of Montreal plans to price reverse exchangeable notes due Aug. 31, 2012 linked to the common stock of Abercrombie & Fitch Co., according to a 424B2 filing with the Securities and Exchange Commission.

The three-month notes are expected to carry a coupon of 14% per year. Interest will be payable monthly.

The payout at maturity will be par unless Abercrombie & Fitch 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 Abercrombie & Fitch 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.

The notes (Cusip: 06366RCH6) are expected to price May 25 and settle May 31.

BMO Capital Markets Corp. is the agent.

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