New Issue: Bank of Montreal prices $520,000 10.74% reverse exchangeables on Market Vectors Gold fund

By Jennifer Chiou

New York, Aug. 30 - Bank of Montreal priced $520,000 of 10.74% annualized reverse exchangeable notes due Feb. 28, 2014 linked to the Market Vectors Gold Miners exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

The payout at maturity will be par in cash unless the ETF falls below the trigger price, 70% of the initial price of $29.60, during the life of the notes and finishes below the initial price in which case the payout will be ETF shares equal to $1,000 principal amount divided by the initial price.

BMO Capital Markets Corp. is the agent.

Issuer:	Bank of Montreal
Issue:	Reverse exchangeable notes
Underlying stock:	Market Vectors Gold Miners ETF
Amount:	$520,000
Maturity:	Feb. 28, 2014
Coupon:	10.74%, payable monthly
Price:	Par
Payout at maturity:	Par in cash unless the ETF falls below the trigger price, 70% of the initial price, and finishes below the initial price, in which case ETF shares equal to $1,000 principal amount divided by the initial price
Initial price:	$29.60
Trigger price:	$20.72, 70% of $29.60
Pricing date:	Aug. 28
Settlement date:	Sept. 3
Agent:	BMO Capital Markets Corp.
Fees:	2%
Cusip:	06366RQZ1

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