New Issue: Bank of Montreal prices $50,000 range accrual notes linked to S&P 500

By Toni Weeks

San Luis Obispo, Calif., July 30 - Bank of Montreal priced $50,000 of range accrual notes with contingent downside protection due July 31, 2018 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

Interest will accrue at 5.8% per year for each day that the index closes at or above the 80% trigger level. Interest is payable quarterly.

The payout at maturity will be par unless the index finishes below the trigger level, in which case investors will be fully exposed to losses from the initial index level.

BMO Capital Markets Corp. is the agent.

Issuer:	Bank of Montreal
Issue:	Range accrual notes
Underlying index:	S&P 500
Amount:	$50,000
Maturity:	July 31, 2018
Coupon:	5.8% per year for each day that index closes at or above trigger level; payable quarterly
Price:	Par
Payout at maturity:	Par unless index finishes below trigger level, in which case full exposure to losses
Initial index level:	1,691.65
Trigger level:	1,353.32, 80% of initial level
Pricing date:	July 26
Settlement date:	July 31
Agent:	BMO Capital Markets Corp.
Fees:	3%
Cusip:	06366RPQ2

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