NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR
FOR DISSEMINATION IN THE UNITED
STATES
TORONTO, Jan. 24,
2023 /CNW/ - Bank of Montreal (TSX:BMO, NYSE:BMO or the "Bank")
today announced a domestic public offering of $650 million of Non-Cumulative 5-Year Fixed
Rate Reset Class B Preferred Shares, Series 52 (Non-Viability
Contingent Capital (NVCC)) (the "Preferred Shares Series 52").
The Preferred Shares Series 52 will be issued to certain
institutional investors at a price of $1,000 per share. Holders will be entitled to
receive non-cumulative preferential fixed semi-annual dividends, as
and when declared by the Board of Directors of the Bank, payable in
the amount of $70.57 per share per
annum, to yield 7.057 per cent annually, for the initial period to,
but excluding, May 26, 2028.
Thereafter, the dividend rate will reset every five years at a rate
equal to the then 5-Year Government of Canada bond yield plus 4.250 per cent.
Subject to regulatory approval, during the period from
April 26, 2028 to and including
May 26, 2028 and during the period
from April 26 to and including
May 26 every fifth year thereafter,
on not less than 15 days nor more than 60 days' notice, the Bank
may redeem the Preferred Shares Series 52 in whole or in part at
par, plus any declared and unpaid dividends.
Upon the occurrence of certain regulatory events and subject to
regulatory approval, the Bank may, at its option and without the
consent of the holder, at any time following such occurrence, on
not less than 30 days nor more than 60 days' notice, redeem the
Preferred Shares Series 52 in whole but not in part at par, plus
any declared and unpaid dividends.
BMO Capital Markets is acting as lead agent on the issue. The
anticipated closing date is January
31, 2023. The net proceeds to the Bank from the sale of
Preferred Shares Series 52 will be added to the general funds of
the Bank and will be utilized for general banking purposes.
The Preferred Shares Series 52 will be offered by way of a
prospectus supplement to the Bank's short form base shelf
prospectus dated December 22, 2022,
to be filed on or about January 26,
2023 with the securities commissions and other similar
regulatory authorities in each of the provinces and territories of
Canada.
The Preferred Shares Series 52 have not been, and will not be,
registered under the U.S. Securities Act of 1933, as amended (the
"U.S. Securities Act"), and may not be offered, sold or delivered
directly, or indirectly, in the United
States absent registration or an applicable exemption from
the registration requirements of the U.S. Securities Act. This news
release shall not constitute an offer to sell or a solicitation of
an offer to buy such Preferred Share Series 52 in the United States or in any other jurisdiction
where such offer is unlawful.
About BMO Financial Group
Serving customers for 200
years and counting, BMO is a highly diversified financial services
provider - the 8th largest bank, by assets, in North America. With total assets of
$1.14 trillion as of October 31, 2022, and a team of diverse and
highly engaged employees, BMO provides a broad range of personal
and commercial banking, wealth management and investment banking
products and services to 12 million customers and conducts business
through three operating groups: Personal and Commercial Banking,
BMO Wealth Management and BMO Capital Markets.
Internet:
www.bmo.com
Twitter: @BMOMedia
SOURCE BMO Financial Group