Bank of Montreal Announces Preferred Share Issue

    TORONTO, June 12 /CNW/ - Bank of Montreal (TSX, NYSE:   BMO) today
announced a domestic public offering of $250 million of Non-Cumulative 5-year
Rate Reset Class B Preferred Shares Series 16 (the "Preferred Shares"). 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
$0.325 per Preferred Share, to yield 5.20 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 1.65 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 17 on August 25, 2013 and on August 25th of every fifth year
thereafter. Holders of the Preferred Shares Series 17 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 1.65 per cent.
    The anticipated closing date is June 23, 2008. The net proceeds from the
offering will be used by the Bank for general corporate purposes.
    The Series 16 and Series 17 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,, (416) 867-3996; Ronald Monet, Montreal,, (514) 877-1873; For Investor Relations Enquiries: Steven
Bonin, Toronto,, (416) 867-5452; Krista White, Toronto,, (416) 867-7019; Internet:

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