TORONTO, July 27, 2020 /CNW/ - Further to the announcement
by Bank of Montreal (the "Bank")
(TSX: BMO) (NYSE: BMO) on June 29,
2020, the Bank today announced the applicable dividend rates
for its Non-Cumulative 5-Year Rate Reset Class B Preferred Shares,
Series 33 (Non-Viability Contingent Capital (NVCC)) (the "Preferred
Shares Series 33") and Non-Cumulative Floating Rate Class B
Preferred Shares, Series 34 (Non-Viability Contingent Capital
(NVCC)) (the "Preferred Shares Series 34").
With respect to any Preferred Shares Series 33 that remain
outstanding after August 25, 2020,
commencing as of such date, holders thereof will be entitled to
receive fixed rate non-cumulative preferential cash dividends on a
quarterly basis, as and when declared by the Board of Directors of
the Bank and subject to the provisions of the Bank Act
(Canada). The dividend rate for
the five-year period commencing on August
25, 2020, and ending on August 24,
2025, will be 3.054 per cent, being equal to the sum of the
five-year Government of Canada
bond yield as at July 27, 2020 (being
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),
plus 2.71 per cent, as determined in accordance with the terms of
the Preferred Shares Series 33.
With respect to any Preferred Shares Series 34 that may be
issued on August 25, 2020, holders
thereof will be entitled to receive floating rate non-cumulative
preferential cash dividends on a quarterly basis, calculated on the
basis of the actual number of days elapsed in each quarterly
floating rate period divided by 365, as and when declared by the
Board of Directors of the Bank and subject to the provisions of the
Bank Act (Canada). The
dividend rate for the three-month period commencing on August 25, 2020, and ending on November 24, 2020, will be 2.878 per cent, being
equal to the sum of the three-month Government of Canada Treasury
bill yield as at July 27, 2020 (being
the first business day following the dividend rate calculation date
of July 26, 2020), plus 2.71 per
cent, as determined in accordance with the terms of the Preferred
Shares Series 34.
Beneficial owners of Preferred Shares Series 33 who wish to
exercise their right of conversion should communicate as soon as
possible with their broker or other nominee and ensure that they
follow their instructions in order to ensure that they meet the
deadline to exercise such right, which is 5:00 p.m. (EDT) on August
10, 2020.
Conversion enquiries 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.
SOURCE BMO Financial Group