BMO has announced:
a domestic public offering of $150 million of Non-Cumulative 5-year Rate Reset Class B Preferred Shares Series 21 (the “Preferred Shares”). The offering will be underwritten on a bought deal basis by a syndicate led by BMO Capital Markets. The Bank has granted to the underwriters an option to purchase up to an additional $75 million of the Preferred Shares exercisable at any time up to two days before closing.
The Preferred Shares will be issued to the public at a price of $25.00 per Preferred Share and holders will be entitled to receive non-cumulative preferential fixed quarterly dividends for an initial five years, as and when declared by the board of directors of the Bank, payable in the amount of $0.40625 per Preferred Share, to yield 6.50 per cent annually.
Thereafter, the dividend rate will reset every five years to be equal to the 5-Year Government of Canada Bond Yield plus 4.58 per cent. Subject to certain conditions, holders may elect to convert any or all of their Preferred Shares into an equal number of Non-Cumulative Floating Rate Class B Preferred Shares Series 22 on May 25, 2014 and on May 25th of every fifth year thereafter. Holders of the Preferred Shares Series 22 will be entitled to receive non-cumulative preferential floating rate quarterly dividends, as and when declared by the board of directors of the Bank, equal to the then 3-month Government of Canada Treasury Bill yield plus 4.58 per cent.
The anticipated closing date is March 20, 2009. The net proceeds from the offering will be used by the Bank for general corporate purposes.
This is another one with a fat first dividend: $0.70342 payable August 25 (assuming a March 20 closing) … so circle the summer ex-date in your calendars, because dividend capture could be lucrative!
Update: Woo-hoo! It’s hot-cake city! BMO has announced:
that as a result of strong investor demand for its previously announced domestic public offering of Non-Cumulative 5-year Rate Reset Class B Preferred Shares Series 21 (the “Preferred Shares”), the size of the offering has been increased to 8 million shares. The gross proceeds of the offering will now be $200 million. The offering will be underwritten on a bought deal basis by a syndicate led by BMO Capital Markets. The Bank has granted to the underwriters an option to purchase up to an additional $75 million of the Preferred Shares exercisable at any time up to two days before closing.
[…] the 6.50%+458 Fixed-Reset announced on March 11 has settled successfully, trading 550,271 shares in a range of 24.90-20 before closing at 25.15-20, […]