BMO.PR.O, 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, 8×50.
Issue size was $150-million plus a greenshoe for $75-million. No announcement has yet been made regarding take-up of the underwriters’ option; but with such heavy volume I’ll bet a nickel it was exercised in full.
Five-Year Canadas have come in considerably since the announcement and are now at 1.58%. This means that the yield-to-Perpetuity of the issue is now a more modest than expected 6.27%, based on a bid of 25.15 and a limitMaturity price of 25.10.
This issue has been added to the HIMIPref™ Fixed-Reset sub-index.