By Cristal Cody
Tupelo, Miss., July 22 – Bank of Montreal announced on Tuesday that it sold C$300 million of non-cumulative rate-reset class B preferred shares with a 3.8% annual dividend for the initial period ending Nov. 25, 2019 in a Basel III-compliant offering.
Bank of Montreal sold the series 31 preferred stock at C$25.00 per share.
BMO Capital Markets Corp. was the lead manager.
The bank may redeem the shares in whole or in part at par on or after Nov. 25, 2019.
The dividend rate will reset on Nov. 25, 2019 and every subsequent fifth year at the then five-year Government of Canada bond yield plus 222 basis points.
Holders may convert their shares into series 32 non-cumulative floating-rate class B preferred shares on Nov. 25, 2019 and on November 25 of every fifth year thereafter.
Series 32 holders will be entitled to receive non-cumulative preferential floating-rate quarterly dividends equal to the then three-month Government of Canada treasury bill yield plus 222 bps.
Series 33 holders may convert any or all of their shares into series 31 preferred stock on Nov. 25, 2024 and on November 25 of every following fifth year.
The Montreal and Toronto financial services company plans to use the proceeds for general corporate purposes.
| Issuer: | Bank of Montreal
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| Amount: | C$300 million
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| Maturity: | Nov. 25, 2019
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| Securities: | Non-cumulative five-year rate-reset class B preferred shares
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| Bookrunner: | BMO Capital Markets Corp.
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| Dividend: | 3.8%; resets Nov. 25, 2019 and every following fifth year at the then five-year Government of Canada bond yield plus 222 bps
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| Price: | C$25.00 per share
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| Call feature: | On or after Nov. 25, 2019 at par
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| Pricing date: | July 22
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| Settlement date: | July 30
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| Ratings: | Moody’s: Baa3
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| Standard & Poor’s: P-2
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| DBRS: Pfd-2
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| Distribution: | Canada
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