BMO announces conversion right for series 29 preferred shares

By Sarah Lizee

Olympia, Wash., June 27 – Bank of Montreal announced that it does not intend to exercise its right to redeem the currently outstanding non-cumulative five-year rate reset class B preferred shares, series 29, on Aug. 25, and as a result, holders have the right to convert all or part of their series 29 preferred shares on a one-for-one basis into non-cumulative floating-rate class B preferred shares, series 30, on Aug. 25.

Holders who do not exercise their right to convert their series 29 preferred shares into series 30 preferred shares will retain their series 29 preferred shares, unless automatically converted.

The conversions are subject to the conditions that

• If, after Aug. 12, the bank determines that there would be less than 1 million series 29 preferred shares outstanding on Aug. 25, then all remaining series 29 preferred shares will automatically be converted into an equal number of series 30 preferred shares on Aug. 25; and

• Alternatively, if the bank determines that there would be less than 1 million series 30 preferred shares outstanding on Aug. 25, no series 29 preferred shares will be converted into series 30 preferred shares.

In either case, the bank will give written notice to holders on or before Aug. 16.

The dividend rate applicable to the series 29 preferred shares for the five-year period starting Aug. 25 and ending on Aug. 24, 2024, and the dividend rate applicable to the series 30 preferred shares for the three-month period starting Aug. 25 and ending on Nov. 24, will be determined and announced on July 26.

The conversion period runs until 5 p.m. ET on Aug. 12.

The financial services company is based in Toronto.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.