{"id":28867,"date":"2015-04-30T16:12:48","date_gmt":"2015-04-30T21:12:48","guid":{"rendered":"http:\/\/prefblog.com\/?p=28867"},"modified":"2015-04-30T16:12:48","modified_gmt":"2015-04-30T21:12:48","slug":"bmo-pr-j-to-be-redeemed-at-a-premium","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=28867","title":{"rendered":"BMO.PR.J To Be Redeemed At A Premium"},"content":{"rendered":"<p>Bank of Montreal <a href=\"http:\/\/newsroom.bmo.com\/press-releases\/bank-of-montreal-to-redeem-350000000-non-cumula-tsx-bmo-201504231003447005\">has announced<\/a> (last week, actually, but I missed it):<\/p>\n<blockquote><p>that it will exercise its right to redeem all of its $350,000,000 Non-Cumulative Perpetual Class B Preferred Shares Series 13 (&#8220;Preferred Shares Series 13&#8221;) on May 25, 2015, at the redemption price of $25.25 per share, for total redemption proceeds of approximately $353.5 million.<\/p>\n<p>Payment of the redemption price will be made by Bank of Montreal on or after May 25, 2015, upon surrender of the Preferred Shares Series 13.<\/p>\n<p>Separately from the payment of the redemption price, the final quarterly dividend of $0.28125 per share for the Preferred Shares Series 13 will be paid in the usual manner on May 25, 2015, to shareholders of record on May 1, 2015.<\/p>\n<p>Notice will be delivered to holders of the Preferred Shares Series 13 in accordance with the terms outlined in the Preferred Shares Series 13 prospectus supplement.<\/p><\/blockquote>\n<p>BMO.PR.J is a 4.50% DeemedRetractible <a href=\"http:\/\/www.prefblog.com\/?p=456\">announced 2007-1-8<\/a> which <a href=\"http:\/\/prefblog.com\/?p=484\">commenced trading 2007-1-17<\/a>.<\/p>\n<p>Holders are strongly urged to consider the tax implications of the redemption: it is being executed at a premium to par ($25.25) and will therefore be treated for tax purposes as a sale at 25.00 with a Deemed Dividend (taxed like any other dividend) of $0.25. If an investor sells on the market, however, it will be taxed as a sale at whatever price he gets (probably a penny or two below the redemption price), with none of the Deemed Dividend complication. The choice between the two options will be a function of transaction costs and the investors individual tax circumstances; please consult your personal tax advisor.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bank of Montreal has announced (last week, actually, but I missed it): that it will exercise its right to redeem all of its $350,000,000 Non-Cumulative Perpetual Class B Preferred Shares Series 13 (&#8220;Preferred Shares Series &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-28867","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/28867","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=28867"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/28867\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=28867"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=28867"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=28867"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}