New Issue: BMO sells $861,000 contingent risk absolute return notes on iShares MSCI EAFE

By Tali Rackner

Norfolk, Va., Feb. 7 – Bank of Montreal priced $861,000 of 0% contingent risk absolute return notes due Jan. 31, 2019 linked to the iShares MSCI EAFE exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

If the fund finishes above the initial level, the payout at maturity will be par plus the gain.

If the fund falls but never closes below the 71% barrier level during the life of the notes, the payout will be par plus the absolute value of the return, up to a maximum downside redemption amount of $1,290 per $1,000 principal amount.

Otherwise, investors will lose 1% for each 1% that the fund declines.

BMO Capital Markets Corp. is the agent.

Issuer:	Bank of Montreal
Issue:	Contingent risk absolute return notes
ETF:	iShares MSCI EAFE
Amount:	$861,000
Maturity:	Jan. 31, 2019
Coupon:	0%
Price:	Par
Payout at maturity:	If fund’s return is positive, par plus the return; if fund’s return is negative and the fund hasn't closed below 71% of its initial level during the life of the notes, par plus absolute value of fund’s return, up to $1,290; otherwise, 1% loss for each 1% decline
Initial level:	$60.07
Barrier level:	$42.65, 71% of initial level
Pricing date:	Jan. 26
Settlement date:	Jan. 31
Agent:	BMO Capital Markets Corp.
Fees:	None
Cusip:	06367TRM4

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