TORONTO,
March 11, 2009 – Bank of Montreal (TSX, NYSE: BMO) today
announced a domestic public offering of $150 million of Non-Cumulative
5-year Rate Reset Class B Preferred Shares Series 21 (the “Preferred
Shares”). The offering will be underwritten on a bought deal basis
by a syndicate led by BMO Capital Markets. The Bank has granted to the
underwriters an option to purchase up to an additional $75 million of the
Preferred Shares exercisable at any time up to two days before closing.
The Preferred Shares will be issued to the public at a price of $25.00
per Preferred Share and holders will be entitled to receive non-cumulative
preferential fixed quarterly dividends for an initial five years, as
and when declared by the board of directors of the Bank, payable in the
amount of $0.40625 per Preferred Share, to yield 6.50 per cent annually.
Thereafter, the dividend rate will reset every five years to be equal
to the 5-Year Government of Canada Bond Yield plus 4.58 per cent. Subject
to certain conditions, holders may elect to convert any or all of their
Preferred Shares into an equal number of Non-Cumulative Floating Rate
Class B Preferred Shares Series 22 on May 25, 2014 and on May 25th of
every fifth year thereafter. Holders of the Preferred Shares Series 22
will be entitled to receive non-cumulative preferential floating rate
quarterly dividends, as and when declared by the board of directors of
the Bank, equal to the then 3-month Government of Canada Treasury Bill
yield plus 4.58 per cent.
The anticipated closing date is March 20, 2009. The net proceeds from
the offering will be used by the Bank for general corporate purposes.
The Series 21 and Series 22 Preferred Shares have not been, and will
not be, registered under the U.S. Securities Act of 1933, as amended,
and may not be offered, sold or delivered directly, or indirectly, in
the United States absent registration or an applicable exemption from
the registration requirements. This news release shall not constitute
an offer to sell in the United States.
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