Date Closed

March 8, 2024

Lead Office

Toronto

Value

1.00 Billion USD

On March 8, 2024, Bank of Montreal (the “Bank”) closed its offering of US$1.0 billion aggregate principal amount of non-viability contingent capital (NVCC) Additional Tier 1 (AT1) Limited Recourse Capital Notes, Series 4, which will mature on May 26, 2084 (the “LRCNs”). Concurrently with the issuance of the LRCNs, the Bank issued NVCC Non-Cumulative 5-Year Fixed Rate Reset Class B Preferred Shares, Series 53 ("Preferred Shares Series 53") to be held by Computershare Trust Company of Canada, as trustee for BMO LRCN Trust (the "Limited Recourse Trust"). In case of non-payment of interest on or principal of the LRCNs when due, the recourse of each LRCN holder will be limited to that holder's proportionate share of the Limited Recourse Trust's assets, which will consist of Preferred Shares Series 53 except in limited circumstances.

BMO Capital Markets Corp., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, Barclays Capital Inc., BNP Paribas Securities Corp. and Credit Agricole Securities (USA) Inc. were the joint book-running managers for the offering. 

McCarthy Tétrault acted as Canadian counsel to the syndicate of underwriters for the offering, with a team led by Andrew Parker that included Jo-Anna Brimmer and Suzie Cusson (Business), Len Nesbitt, Kabir Jamal and Adam Unick (Tax).