BMO.PR.S : No Conversion to FloatingReset

Bank of Montreal has announced:

that none of its 20 million Non-Cumulative 5-Year Rate Reset Class B Preferred Shares, Series 27 (the “Preferred Shares Series 27”) will be converted on May 27, 2019, being the first business day following the conversion date of May 25, 2019, into Non-Cumulative Floating Rate Class B Preferred Shares, Series 28 of the Bank (the “Preferred Shares Series 28”).

During the conversion period which ran from April 25, 2019 to May 10, 2019, 412,564 Preferred Shares Series 27 were tendered for conversion into Preferred Shares Series 28, which is less than the minimum 1,000,000 required to give effect to the conversion, as described in the Preferred Shares Series 27 prospectus supplement dated April 16, 2014. As a result, no Preferred Shares Series 28 will be issued on May 27, 2019 and holders of Preferred Shares Series 27 will retain their shares.

The Preferred Shares Series 27 are currently listed on the Toronto Stock Exchange under the symbol BMO.PR.S. As previously announced on April 25, 2019, the dividend rate for the five-year period commencing on May 25, 2019, and ending on May 24, 2024, will be 3.852 per cent.

BMO.PR.S is a FixedReset, 4.00%+233, NVCC-compliant issue that commenced trading 2014-4-23 after being announced 2014-4-14. The issue will reset At 3.852% effective May 25, 2019. I recommended against conversion. It is tracked by HIMIPref™ and is assigned to the FixedReset-Discount Sub-Index.

One Response to “BMO.PR.S : No Conversion to FloatingReset”

  1. […] The issue reset at 3.852% effective 2019-5-25. I recommended against conversion and there was no conversion. It is tracked by HIMIPref™ and is assigned to the FixedReset-Discount […]

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