Bank of Montreal plans five-year range accrual notes linked to S&P 500

By Susanna Moon

Chicago, July 9 - Bank of Montreal plans to price range accrual notes with contingent downside protection due July 31, 2018 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

Interest will accrue at 1.45% quarterly for each day that the index closes at or above 80% trigger level, up to a maximum annualized rate of 5.8%. Interest is payable quarterly and cannot be less than zero.

The payout at maturity will be par unless the index finishes below the 80% trigger level, in which case investors will be fully exposed to any losses.

The notes will be callable at par on any interest payment date beginning on July 29, 2014.

BMO Capital Markets Corp. is the underwriter.

The notes will price on July 26 and settle on July 31.

The Cusip number is 06366RPQ2.

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