Bank of Montreal plans contingent risk absolute return notes linked to iShares MSCI EAFE

By Susanna Moon

Chicago, April 15 - Bank of Montreal plans to price 0% contingent risk absolute return notes due April 29, 2015 linked to the iShares MSCI EAFE index fund, according to a 424B2 filing with the Securities and Exchange Commission.

A barrier event occurs if the fund ever closes below the barrier level on any trading day during the life of the notes. The barrier level will be between 67.5% and 71.5%, with the exact percentage to be set at pricing.

If the fund finishes at or above the initial level, the payout at maturity will be par plus any gain, up to maximum return of $1,285 to $1,325 for each $1,000 principal amount.

If the fund falls but a barrier event never occurs, the payout will be par plus the absolute value of the index return.

Otherwise, investors will be fully exposed to any losses.

BMO Capital Markets Corp. is the agent.

The notes are expected to price on April 24 and settle on April 29.

The Cusip number is 06366RNM3.

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