TORONTO, June 29, 2020 /CNW/ - Bank of Montreal (the "Bank") (TSX:BMO)(NYSE:BMO)
today announced that it does not intend to exercise its right to
redeem the currently outstanding Non-Cumulative 5-Year Rate Reset
Class B Preferred Shares, Series 33 (Non-Viability Contingent
Capital (NVCC)) of the Bank (the "Preferred Shares Series 33") on
August 25, 2020. As a result, subject
to certain conditions, the holders of Preferred Shares Series 33
have the right, at their option, to convert all or part of their
Preferred Shares Series 33 on a one-for-one basis into
Non-Cumulative Floating Rate Class B Preferred Shares, Series 34
(Non-Viability Contingent Capital (NVCC)) of the Bank (the
"Preferred Shares Series 34") on August 25,
2020. Holders who do not exercise their right to convert
their Preferred Shares Series 33 into Preferred Shares Series 34 on
such date will retain their Preferred Shares Series 33, unless
automatically converted in accordance with the conditions
below.
The foregoing conversions are subject to the conditions that:
(i) if, after August 10, 2020, the
Bank determines that there would be less than 1,000,000 Preferred
Shares Series 33 outstanding on August 25,
2020, then all remaining Preferred Shares Series 33 will
automatically be converted into an equal number of Preferred Shares
Series 34 on August 25, 2020; and
(ii) alternatively, if the Bank determines that there would be less
than 1,000,000 Preferred Shares Series 34 outstanding on
August 25, 2020, no Preferred Shares
Series 33 will be converted into Preferred Shares Series 34. In
either case, the Bank will give written notice to that effect to
any registered holders of Preferred Shares Series 33 affected by
the preceding minimums on or before August
14, 2020.
The dividend rate applicable to the Preferred Shares Series 33
for the 5-year period commencing on August
25, 2020, and ending on August 24,
2025, and the dividend rate applicable to the Preferred
Shares Series 34 for the 3-month period commencing on August 25, 2020, and ending on November 24, 2020, will be determined and
announced by way of a news release on July
27, 2020. This date is the first business day following
the dividend rate calculation date of July
26, 2020, established in the Preferred Shares Series 33
prospectus, which falls on a Sunday. The Bank will also give
written notice of these dividend rates to the registered holders of
Preferred Shares Series 33.
Beneficial owners of Preferred Shares Series 33 who, on or after
July 27, 2020, wish to exercise their
right of conversion should instruct their broker or other nominee
to exercise such right before 5:00 p.m.
(EDT) on August 10, 2020.
Conversion inquiries should be directed to BMO's Registrar and
Transfer Agent, Computershare Trust Company of Canada, at 1-800-340-5021.
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.
Internet:
www.bmo.com Twitter:
@BMOMedia
SOURCE BMO Financial Group