Bank of Montreal plans to price range accrual notes linked to S&P 500

By Angela McDaniels

Tacoma, Wash., Aug. 29 - Bank of Montreal plans to price range accrual notes with contingent downside protection due Sept. 29, 2017 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

Interest will be payable quarterly at a rate equal to 1.675% - equivalent to 6.7% per year - multiplied by the proportion of days on which the index's closing level is at least 80% of the initial level.

If the index's final level is greater than or equal to the trigger level, the payout at maturity will be par. The trigger level will be 80% of the initial level. Investors will be fully exposed to the index's decline if the final level is less than the trigger level.

The notes are expected to price Sept. 25 and settle Sept. 28.

BMO Capital Markets Corp. is the agent.

The Cusip number is 06366RGZ2.

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