/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
TORONTO, June 10, 2020 /CNW/ - Bank of Montreal (TSX:BMO) (NYSE:BMO) today announced
a domestic public offering of $1.25
billion of subordinated notes (Non-Viability Contingent
Capital (NVCC)) (the "Notes") through its Canadian Medium-Term Note
Program. The net proceeds from this offering will be used for
general banking purposes.
The Notes bear interest at a fixed rate of 2.077 per cent per
annum (paid semi-annually) until June 17,
2025, and at the three-month Bankers' Acceptance Rate plus
1.32 per cent thereafter (paid quarterly) until their maturity on
June 17, 2030. The expected closing
date is June 17, 2020. BMO Capital
Markets is acting as lead agent on the issue.
The Bank may, at its option, with the prior approval of the
Office of the Superintendent of Financial Institutions Canada (the
"Superintendent"), redeem the Notes on or after June 17, 2025, at par, in whole at any time or in
part from time to time, on not less than 30 days' and not more than
60 days' notice to registered holders, at a redemption price that
is equal to par, together with accrued and unpaid interest to, but
excluding, the date fixed for redemption.
At any time on or after a Special Event Redemption Date prior to
June 17, 2025, the Bank may, at its
option, with the prior approval of the Superintendent, on giving
not more than 60 nor less than 30 days' notice to the registered
holders of the Notes, redeem all (but not less than all) of the
Notes at a redemption price that is equal to the greater of the
Canada Yield Price and par, together in either case with accrued
and unpaid interest to, but excluding, the date fixed for
redemption.
The Notes 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 press
release does not constitute an offer to sell or a solicitation to
buy securities in the United
States or in any other jurisdiction where such offer or
solicitation would be 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 $987
billion as of April 30, 2020, 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 more than 12 million customers and
conducts business through three operating groups: Personal and
Commercial Banking, BMO Wealth Management and BMO Capital
Markets.
SOURCE BMO Financial Group