By Marisa Wong
Los Angeles, Dec. 5 – Bank of Montreal priced a $1.5 billion two-tranche offering of senior medium-term notes, series H, due 2026 on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
Bank of Montreal priced $1.15 billion of 5.266% fixed-rate notes at par with a spread of Treasuries plus 93 basis points and $350 million of floating-rate notes due 2026 at par with a coupon of SOFR plus 116 bps.
The notes are bail-inable and subject to conversion in whole or in part into common shares of Bank of Montreal or any of its affiliates.
The fixed-rate notes are callable at any time with a make-whole premium.
In addition, any changes in Canadian tax law will make each tranche of notes callable at par.
BMO Capital Markets Corp., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, Santander US Capital Markets LLC, UBS Securities LLC and Wells Fargo Securities LLC are the bookrunners.
Proceeds will be contributed to the general funds of Bank of Montreal and used for general corporate purposes.
The issuer is a Montreal-based bank.
| Issuer: | Bank of Montreal
|
| Amount: | $1.5 billion
|
| Issue: | Senior medium-term notes, series H
|
| Maturity: | Dec. 11, 2026
|
| Bookrunners: | BMO Capital Markets Corp., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, Santander US Capital Markets LLC, UBS Securities LLC and Wells Fargo Securities LLC
|
| Co-managers: | Commonwealth Bank of Australia, Desjardins Securities Inc., Intesa Sanpaolo IMI Securities Corp., nabSecurities, LLC, Academy Securities, Inc. and Roberts & Ryan Investments, Inc.
|
| Trustee: | Computershare Trust Co., NA
|
| Counsel to issuer: | Osler, Hoskin & Harcourt LLP (Canada), Sullivan & Cromwell LLP (New York)
|
| Counsel to underwriters: | Shearman & Sterling LLP
|
| Tax redemption: | Upon occurrence of Canadian tax event
|
| Canadian bail-in powers: | Yes
|
| Trade date: | Dec. 5
|
| Settlement date: | Dec. 11
|
|
|
| Fixed-rate notes
|
| Amount: | $1.15 billion
|
| Coupon: | 5.266%
|
| Price: | Par
|
| Yield: | 5.266%
|
| Spread: | Treasuries pls 93 bps
|
| Call option: | Make-whole call at Treasuries plus 15 bps
|
| Cusip: | 06368LC53
|
|
|
| Floating-rate notes
|
| Amount: | $350 million
|
| Coupon: | SOFR plus 116 bps
|
| Price: | Par
|
| Yield: | SOFR plus 116 bps
|
| Cusip: | 06368LC61
|
|
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