Bank of Montreal subsidiaries wrap tender offers for three note series

By Susanna Moon

Chicago, Aug. 1 - Bank of Montreal and its subsidiaries, BMO Harris Bank NA and BMO Financial Corp., completed their cash tender offers for three series of notes.

Holders had tendered the following amounts by the end of the offers at 5 p.m. ET on July 31:

• None of BMO Financial's $22.5 million of 7.5% subordinated notes due 2013;

• $64.7 million of BMO Harris Bank's $350 million 4.85% subordinated bank notes due 2015; and

• $94.7 million of BMO Harris Bank's $300 million 5% subordinated bank notes due 2017.

The bank will settle the offers with cash on hand on Aug. 1, according to a press release.

As previously noted, for each $1,000 principal amount of notes, the purchase price is $1,077.58 for the 7.5% notes with a reference yield of 0.225%, $1,091.01 for the 4.85% notes with a reference yield of 0.298% and $1,120.61 for the 5% notes with a reference yield of 0.6%.

Pricing was set at 2 p.m. ET on July 31 using the 0.25% U.S. Treasury note due June 20, 2014 and a fixed spread of 100 basis points for the 7.5% notes, the 0.25% note due July 15, 2015 plus 130 bps for the 4.85% notes and the 0.75% note due June 30, 2017 plus 155 bps for the 5% notes.

BMO will also pay accrued interest.

There was no minimum tender payment.

Global Bondholder Services Corp. was the depositary and information agent (212 430-3774 or 888 873-7700). Sandler O'Neill + Partners, LP was the dealer manager (866 805-4128 or 212 466-7807).

Established in 1817 as Bank of Montreal, Toronto-based BMO Financial Group is a diversified North American financial services organization.

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