New Issue: Bank of Montreal prices $464,000 8.45% reverse exchangeables on Ford

By Marisa Wong

Madison, Wis., Jan. 28 - Bank of Montreal priced $464,000 of reverse exchangeable notes due Jan. 31, 2012 linked to the common stock of Ford Motor Co., according to a 424B2 filing with the Securities and Exchange Commission.

The notes carry an annualized coupon of 8.45%. Interest is payable monthly.

The payout at maturity will be par unless Ford stock closes below the trigger price - 75% of the initial share price - during the life of the notes and the final share price is less than the initial share price, in which case the payout will be a number of shares of Ford stock equal to $1,000 divided by the initial share price or, at the issuer's option, a cash amount equal to the value of those shares.

BMO Capital Markets Corp. is the agent.

Issuer:	Bank of Montreal
Issue:	Reverse exchangeable notes
Underlying stock:	Ford Motor Co. (Symbol: F)
Amount:	$464,000
Maturity:	Jan. 31, 2012
Coupon:	8.45%, payable monthly
Price:	Par
Payout at maturity:	If Ford stock closes below trigger price during life of notes and final share price is less than initial share price, number of Ford shares equal to $1,000 divided by initial share price or value of those shares in cash; otherwise, par
Initial share price:	$18.37
Trigger price:	$13.78, 75% of initial price
Pricing date:	Jan. 26
Settlement date:	Jan. 31
Agent:	BMO Capital Markets Corp.
Fees:	2.75%
Cusip:	06366QCP0

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