New Issue: Bank of Montreal sells $1 billion 7.7% limited recourse capital notes due 2084

By Wendy Van Sickle

Columbus, Ohio, Feb. 29 – Bank of Montreal priced $1 billion of 7.7% 60-year non-viability contingent capital additional tier 1 limited recourse capital notes, series 4, according to a news release.

The coupon is fixed at 7.7% for the first five years, then resets every five years at Treasuries plus 345.2 basis points.

The notes may be called after five years.

The issuer held investor calls and a roadshow on Wednesday for the offering.

BMO Capital Markets Corp., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, Barclays, BNP Paribas Securities Corp. and Credit Agricole Securities (USA) Inc. were the bookrunners.

Proceeds will be used for general banking purposes.

Bank of Montreal is a Montreal-based banking and financial services provider.

Issuer:	Bank of Montreal
Amount:	$1 billion
Issue:	Non-viability contingent capital additional tier 1 limited recourse capital notes, series 4
Maturity:	May 26, 2084
Bookrunners:	BMO Capital Markets Corp., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, Barclays, BNP Paribas Securities Corp. and Credit Agricole Securities (USA) Inc.
Trustee:	Computershare Trust Co., NA
Counsel to issuer:	Osler, Hoskin & Harcourt LLP, Sullivan & Cromwell LLP and Torys LLP
Counsel to underwriters:	Shearman & Sterling LLP
Coupon:	7.7% to, but excluding, May 26, 2029, then resets every five years at Treasuries plus 345.2 bps
Call option:	Quarterly starting on May 26, 2029
Trade date:	Feb. 29
Settlement date:	March 8

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