BMO Sells $ 350 M BOaTS

The Bank of Montreal (BMO) sold $350 million of Trust Capital Securities-Series A (BMO BOaTS) in an offering that closed on October 11, 2000. The offering of BMO BOaTS will provide BMO—as the holder of certain securities of BMO Capital Trust—a closed end unit trust, with a method of raising Tier 1 capital for Canadian bank regulatory purposes.

The BMO BOaTS have no maturity date, but are redeemable at the option of BMO Capital Trust beginning December 31, 2005. Subject to BMO Capital Trust’s right to redeem and the bank’s right to acquire the BMO BOaTS beginning December 31, 2010, holders have the right to exchange the BMO BOaTS for bank preferred shares which are immediately convertible into common shares of the bank. In certain circumstances, the BMO BOaTS will be exchanged automatically for bank preferred shares.

Osler, Hoskin & Harcourt LLP represented BMO and BMO Capital Trust, with a team comprised of James Lisson, Deborah Alexander, George Valentini and Collin Berryman, together with Brian Philbrook, in-house counsel for BMO. Jeffrey Barnes, Heather Zordel, Russel Kowalyk and Dan Dishy of Fraser Milner Casgrain represented the underwriting syndicate led by BMO Nesbitt Burns Inc.