The Bank of Montreal has announced:
its intention to redeem all of its $400,000,000 Non-Cumulative 5-Year Rate Reset Class B Preferred Shares Series 23 (“Preferred Shares Series 23”) on February 25, 2015.
The Preferred Shares Series 23 are redeemable at Bank of Montreal’s option on February 25, 2015, at a redemption price of $25.00 per share. Payment of the redemption price will be made by Bank of Montreal on or after February 25, 2015, upon surrender of the Preferred Shares Series 23.
Separately from the payment of the redemption price, the final quarterly dividend of $0.3375 per share for the Preferred Shares Series 23 will be paid in the usual manner on February 25, 2015, to shareholders of record on February 2, 2015.
Notice will be delivered to holders of the Preferred Shares Series 23 in accordance with the terms outlined in the Preferred Shares Series 23 prospectus supplement.
BMO.PR.P is a FixedReset, 5.40%+241, that commenced trading 2009-6-19 after being announced 2009-6-10. The issue has been tracked by HIMIPref™ and is assigned to the FixedReset subindex. The issue is not NVCC compliant and therefore redemption on or before 2021-1-31 has been assumed in the analysis ever since the rules were announced without a grandfather clause and recognized by HIMIPref™.
Redemption of this issue has been widely expected, but I must admit that I thought it could go either way. Five Year Canadas closed at 0.84% bid today, implying the bank could have got another five-years’ worth of Tier 1 Capital for only 3.27%. I guess they don’t figure on needing it!
This entry was posted on Thursday, January 22nd, 2015 at 8:36 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed.
You can leave a response, or trackback from your own site.
BMO.PR.P To Be Redeemed
The Bank of Montreal has announced:
BMO.PR.P is a FixedReset, 5.40%+241, that commenced trading 2009-6-19 after being announced 2009-6-10. The issue has been tracked by HIMIPref™ and is assigned to the FixedReset subindex. The issue is not NVCC compliant and therefore redemption on or before 2021-1-31 has been assumed in the analysis ever since the rules were announced without a grandfather clause and recognized by HIMIPref™.
Redemption of this issue has been widely expected, but I must admit that I thought it could go either way. Five Year Canadas closed at 0.84% bid today, implying the bank could have got another five-years’ worth of Tier 1 Capital for only 3.27%. I guess they don’t figure on needing it!
This entry was posted on Thursday, January 22nd, 2015 at 8:36 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.