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Bank of Montreal Announces Subordinated Note Issue

T.BMO

/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

TORONTO, July 15, 2021 /CNW/ - Bank of Montreal (TSX: BMO) (NYSE: BMO) today announced a domestic public offering of $1.00 billion of subordinated notes (Non-Viability Contingent Capital (NVCC)) (the "Notes") through its Canadian Medium-Term Note Program. The net proceeds from this offering will be used for general banking purposes.

The Notes bear interest at a fixed rate of 1.928 per cent per annum (paid semi-annually) until July 22, 2026, and at the 3-month CDOR plus 0.59 per cent thereafter (paid quarterly) until their maturity on July 22, 2031. The expected closing date is July 22, 2021. BMO Capital Markets is acting as lead agent on the issue.

The Bank may, at its option, with the prior approval of the Office of the Superintendent of Financial Institutions Canada (the "Superintendent"), redeem the Notes on or after July 22, 2026, at par, in whole at any time or in part from time to time, on not less than 30 days' and not more than 60 days' notice to registered holders, at a redemption price that is equal to par, together with accrued and unpaid interest to, but excluding, the date fixed for redemption.

At any time on or after a Special Event Redemption Date prior to July 22, 2026, the Bank may, at its option, with the prior approval of the Superintendent, on giving not more than 60 nor less than 30 days' notice to the registered holders of the Notes, redeem all (but not less than all) of the Notes at a redemption price that is equal to the greater of the Canada Yield Price and par, together in either case with accrued and unpaid interest to, but excluding, the date fixed for redemption.

The Notes have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"), 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 of the U.S. Securities Act. This press release does not constitute an offer to sell or a solicitation to buy securities in the United States or in any other jurisdiction where such offer or solicitation would be unlawful.

About BMO Financial Group
Serving customers for 200 years and counting, BMO is a highly diversified financial services provider - the 8th largest bank, by assets, in North America. With total assets of $950 billion as of April 30, 2021, and a team of diverse and highly engaged employees, BMO provides a broad range of personal and commercial banking, wealth management and investment banking products and services to more than 12 million customers and conducts business through three operating groups: Personal and Commercial Banking, BMO Wealth Management and BMO Capital Markets.

SOURCE BMO Financial Group

Cision View original content: http://www.newswire.ca/en/releases/archive/July2021/15/c4475.html



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