By Angela McDaniels
Tacoma, Wash., May 30 - Bank of Montreal priced $270,000 of reverse exchangeable digital return notes due Aug. 31, 2012 linked to the common stock of AK Steel Holding Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The three-month notes carry a coupon of 19.95% per year. Interest is payable monthly.
If the final share price exceeds the initial share price, the payout at maturity will be par plus 3.8%.
If the final share price is less than or equal to the initial share price and the closing price of AK Steel shares fell below the trigger price, 75% of the initial share price, during the life of the notes, the payout will be a number of shares of AK Steel 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.
If the final share price is less than or equal to the initial share price and the closing price of AK Steel shares did not fall below the trigger price during the life of the notes, the payout will be par.
BMO Capital Markets Corp. is the agent.
| Issuer: | Bank of Montreal
|
| Issue: | Reverse exchangeable digital return notes
|
| Underlying stock: | AK Steel Holding Corp. (Symbol: AKS)
|
| Amount: | $270,000
|
| Maturity: | Aug. 31, 2012
|
| Coupon: | 19.95%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | If final share price exceeds initial share price, par plus 3.8%; if final share price is less than or equal to initial share price and AK Steel shares close below trigger price during life of notes, 158.7302 AK Steel shares or cash amount equal to value of those shares; if final share price is less than or equal to initial share price and AK Steel shares did not fall below trigger price during life of notes, par
|
| Initial share price: | $6.30
|
| Trigger price: | $4.73, 75% of initial share price
|
| Pricing date: | May 25
|
| Settlement date: | May 31
|
| Agent: | BMO Capital Markets Corp.
|
| Fees: | 2%
|
| Cusip: | 06366RDQ5
|
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