New Issue: BMO Straight Perpetual, 5.00%, NVCC

Bank of Montreal has announced:

a domestic public offering of $150 million of Non-Cumulative Perpetual Class B Preferred Shares, Series 35 (Non-Viability Contingent Capital (NVCC)) (the “Preferred Shares”). The offering will be underwritten on a bought-deal basis by a syndicate of underwriters led by BMO Capital Markets. The Bank has granted to the underwriters an option to purchase up to an additional $50 million of the Preferred Shares exercisable at any time up to 48 hours before closing.

The Preferred Shares will be issued to the public at a price of $25.00 per share. Holders will be entitled to receive non-cumulative preferential fixed quarterly dividends as and when declared by the board of directors of the Bank, payable in the amount of $0.3125 per share, to yield 5.00 per cent annually. Subject to regulatory approval, on or after August 25, 2020, the Bank may redeem the Preferred Shares in whole or in part at a declining premium.

The anticipated closing date is July 29, 2015. The net proceeds from the offering will be used by the Bank for general corporate purposes.

It’s very nice to see another Straight Perpetual being issued!

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