New Issue: Bank of Montreal sells $670,000 10.07% reverse exchangeables tied to Freeport-McMoRan

By Susanna Moon

Chicago, Jan. 27 - Bank of Montreal priced $670,000 of 10.07% annualized reverse exchangeable notes due July 30, 2012 linked to Freeport-McMoRan Copper & Gold Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

The payout at maturity will be par unless Freeport-McMoRan stock closes below the trigger price - 70% of the initial share price - on any day during the life of the notes and finishes below the initial price, in which case the payout will be a number of shares of Freeport-McMoRan stock 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 stock:	Freeport-McMoRan Copper & Gold Inc. (Symbol: FCX)
Amount:	$670,000
Maturity:	July 30, 2012
Coupon:	10.07%, payable monthly
Price:	Par
Payout at maturity:	If stock ever closes below trigger level and finishes below the initial price, 21.7533 Freeport-McMoRan shares; otherwise, par
Initial share price:	$45.97
Trigger price:	$32.18, 70% of initial share price
Pricing date:	Jan. 25
Settlement date:	Jan. 30
Agent:	BMO Capital Markets Corp.
Fees:	2%
Cusip:	06366Q2A4

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