TORONTO, July 9, 2024
/CNW/ - Bank of Montreal (TSX:
BMO) (NYSE: BMO or the "Bank") today announced the pricing of
USD 750 million of non-viability
contingent capital ("NVCC") Additional Tier 1 (AT1) Limited
Recourse Capital Notes, Series 5 (the "LRCNs").
The LRCNs will bear interest at a rate of 7.300 per cent
annually, payable quarterly, for the initial period ending, but
excluding, November 26, 2034.
Thereafter, the interest rate on the LRCNs will reset every five
years at a rate equal to the prevailing 5-year U.S. Treasury Rate
plus 3.01 per cent. The LRCNs will mature on November 26, 2084. The expected closing date of
the offering is July 17, 2024.
On or before the issuance of the LRCNs, the Bank will issue NVCC
Non-Cumulative 5-Year Fixed Rate Reset Class B Preferred Shares,
Series 54 ("Preferred Shares Series 54") to be held by
Computershare Trust Company of Canada, as trustee for BMO LRCN Trust (the
"Limited Recourse Trust"). In case of non-payment of interest on or
principal of the LRCNs when due, the recourse of each LRCN holder
will be limited to that holder's proportionate share of the Limited
Recourse Trust's assets, which will consist of Preferred Shares
Series 54 except in limited circumstances.
The LRCNs may be redeemed at the option of the Bank, with the
prior written approval of the Superintendent of Financial
Institutions (Canada), in whole or
in part, on not less than 10 nor more than 60 days' prior notice,
every quarter on the interest payment date, commencing on
November 26, 2034.
The net proceeds will be contributed to the general funds of the
Bank and will be utilized for general banking purposes, which may
include the redemption of outstanding capital securities of the
Bank and/or repayment of other outstanding liabilities of the Bank,
and are expected to qualify as Additional Tier 1 capital of the
Bank for regulatory purposes.
BMO Capital Markets Corp., BofA Securities, Citigroup
Global Markets Inc., Goldman Sachs & Co. LLC, Truist
Securities, Inc. and UBS Securities LLC are the joint
book-running managers for the offering.
A registration statement relating to the offering has been filed
with the U.S. Securities and Exchange Commission (the "SEC") and is
effective. The offering is being made only by means of a prospectus
supplement and the accompanying prospectus that forms a part of the
registration statement. Copies of the preliminary prospectus
supplement and the accompanying prospectus for the offering may be
obtained free of charge by visiting EDGAR on the SEC's website at
www.sec.gov. Alternatively, copies of the final prospectus
supplement, when available, and the accompanying prospectus may
also be obtained by contacting BMO Capital Markets Corp. toll-free
at 1-866-864-7760; BofA Securities toll-free at 1-800-294-1322;
Citigroup Global Markets Inc. toll-free at 1-800-831-9146; Goldman
Sachs & Co. LLC toll-free at 1-866-471-2526; Truist Securities,
Inc. toll-free at 1-800-685-4786 and UBS Securities LLC toll-free
at 1-888-827-7275.
This press release does not constitute an offer to sell, or a
solicitation of an offer to buy, these securities in the United States or in any other jurisdiction
where such offer, solicitation or sale would be unlawful. The
offering may be made only by means of a prospectus supplement and
the accompanying prospectus.
About BMO Financial Group
BMO Financial Group is the
eighth largest bank in North America by assets, with total assets
of $1.4 trillion as of April 30, 2024. Serving customers for 200
years and counting, BMO is a diverse team of highly engaged
employees providing a broad range of personal and commercial
banking, wealth management, global markets and investment banking
products and services to 13 million customers across Canada, the
United States, and in select
markets globally. Driven by a single purpose, to Boldly Grow the
Good in business and life, BMO is committed to driving
positive change in the world, and making progress for a thriving
economy, sustainable future, and inclusive society.
SOURCE BMO Financial Group