New Issue: Bank of Montreal sells $517,000 contingent risk absolute return notes on iShares MSCI EAFE

By Toni Weeks

San Luis Obispo, Calif., Dec. 24 - Bank of Montreal plans to price 0% contingent risk absolute return notes due Dec. 24, 2015 linked to the iShares MSCI EAFE exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

A barrier event will occur if the fund's closing share price is less than the barrier level, 74% of the initial share price, on any day during the life of the notes.

If the fund return is positive, the payout at maturity will be par plus the fund gain. If the fund return is zero or negative and a barrier event has not occurred, the payout will be par plus the absolute value of the fund return. Otherwise, investors will be fully exposed to the fund's decline from the initial price.

BMO Capital Markets Corp. is the agent.

Issuer:	Bank of Montreal
Issue:	Contingent risk absolute return notes
Underlying fund:	iShares MSCI EAFE ETF
Amount:	$517,000
Maturity:	Dec. 24, 2015
Coupon:	0%
Price:	Par of $10.00
Payout at maturity:	If fund return is positive, par plus the gain; if fund return is zero or negative and share price never dropped below barrier level during life of notes, par plus absolute value of fund return; if barrier event has occurred, full exposure to decline in share price
Initial price:	$54.70
Barrier level:	$40.48, 74% of initial price
Pricing date:	Dec. 19
Settlement date:	Dec. 24
Agent:	BMO Capital Markets Corp.
Fees:	None
Cusip:	06366RSP1

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