Bank of Montreal plans rising-rate notes linked to 30-year CMS rate

By Jennifer Chiou

New York, March 6 - Bank of Montreal plans to price rising-rate notes due March 31, 2020 linked to the 30-year Constant Maturity Swap rate, according to a 424B2 filing with the Securities and Exchange Commission.

Semiannual interest is payable at 0.5% in March and September of each year, beginning on Sept. 30, 2014.

The payout at maturity will be par plus the final interest payment. If the final 30-year CMS rate is greater than 3.5%, holders will also receive par plus 2.75 times the result of CMS rate minus 3.5%.

The notes (Cusip: 06366RTL9) are expected to price on March 26 and settle on March 31.

BMO Capital Markets Corp. is the agent.

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