New Issue: Bank of Montreal prices $350,000 7.25% reverse exchangeable notes linked to Gold Miners

By Toni Weeks

San Luis Obispo, Calif., July 30 – Bank of Montreal priced $350,000 of 7.25% annualized reverse exchangeable notes due Jan. 29, 2016 linked to the Market Vectors Gold Miners exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

The payout at maturity will be par unless the fund closes below the trigger level, 65% of the initial share price, during the life of the notes and finishes below the initial share price, in which case the payout will be a number of fund shares equal to $1,000 divided by the initial share price or, at the issuer's option, the cash equivalent.

BMO Capital Markets Corp. is the agent.

Issuer:	Bank of Montreal
Issue:	Reverse exchangeable notes
Underlying fund:	Market Vectors Gold Miners ETF
Amount:	$350,000
Maturity:	Jan. 29, 2016
Coupon:	7.25% annualized, payable monthly
Price:	Par
Payout at maturity:	If fund stock ever closes below trigger price and finishes below initial share price, number of fund shares equal to $1,000 divided by the initial share price or, at issuer’s option, cash equivalent; otherwise, par
Initial share price:	$13.69
Trigger price:	$8.90, 65% of initial price
Pricing date:	July 28
Settlement date:	July 31
Agent:	BMO Capital Markets Corp.
Fees:	2%
Cusip:	06366RV51

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