Bank of Montreal plans 12% reverse exchangeables linked to Ford

By Jennifer Chiou

New York, Oct. 17 - Bank of Montreal plans to price 12% annualized reverse exchangeable notes due Jan. 31, 2012 linked to Ford Motor Co. shares, according to a 424B2 filing with the Securities and Exchange Commission.

Interest will be payable monthly.

The payout at maturity will be par unless Ford stock ever closes below the trigger price - 80% of the initial share price - and finishes below 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, the cash equivalent.

The notes (Cusip: 06366QZS9) are expected to price on Oct. 26 and settle on Oct. 31.

BMO Capital Markets Corp. is the agent.

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