Bank of Montreal Announces Increase to Preferred Share Issue



    TORONTO, June 10 /CNW/ - Bank of Montreal (TSX, NYSE:   BMO) today
announced that as a result of strong investor demand for its previously
announced domestic public offering of Non-Cumulative 5-year Rate Reset Class B
Preferred Shares Series 23 (the "Preferred Shares"), the size of the offering
has been increased to 14 million shares. The gross proceeds of the offering
will now be $350 million. The offering will be underwritten on a bought deal
basis by a syndicate led by BMO Capital Markets. The Bank has granted to the
underwriters an option to purchase up to an additional $50 million of the
Preferred Shares exercisable at any time up to two days before closing.
    The Preferred Shares will be issued to the public at a price of $25.00
per Preferred Share and holders will be entitled to receive non-cumulative
preferential fixed quarterly dividends for an initial five years, as and when
declared by the board of directors of the Bank, payable in the amount of
$0.3375 per Preferred Share, to yield 5.40 per cent annually.
    Thereafter, the dividend rate will reset every five years to be equal to
the 5-Year Government of Canada Bond Yield plus 2.41 per cent. Subject to
certain conditions, holders may elect to convert any or all of their Preferred
Shares into an equal number of Non-Cumulative Floating Rate Class B Preferred
Shares Series 24 on February 25, 2015 and on February 25th of every fifth year
thereafter. Holders of the Preferred Shares Series 24 will be entitled to
receive non-cumulative preferential floating rate quarterly dividends, as and
when declared by the board of directors of the Bank, equal to the then 3-month
Government of Canada Treasury Bill yield plus 2.41 per cent.
    The anticipated closing date is June 19, 2009. The net proceeds from the
offering will be used by the Bank for general corporate purposes.
    The Series 23 and Series 24 Preferred Shares have not been, and will not
be, registered under the U.S. Securities Act of 1933, as amended, and may not
be offered, sold or delivered directly, or indirectly, in the United States
absent registration or an applicable exemption from the registration
requirements. This news release shall not constitute an offer to sell in the
United States.





For further information:

For further information: For News Media Enquiries: Ralph Marranca,
Toronto, ralph.marranca@bmo.com, (416) 867-3996; Ronald Monet, Montreal,
ronald.monet@bmo.com, (514) 877-1873; For Investor Relations Enquiries: Steven
Bonin, Toronto, steven.bonin@bmo.com, (416) 867-5452; Andrew Chin, Toronto,
andrew.chin@bmo.com, (416) 867-7019; Internet: www.bmo.com


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