BMO's $450M Tier 1 Notes – Series A Offering

On December 18, 2008, BMO Capital Trust II, a trust established by Bank of Montreal, issued $450 million of 10.221 per cent BMO Tier 1 Notes – Series A due December 31, 2107. The offering was underwritten by a syndicate led by BMO Nesbitt Burns Inc. and included Scotia Capital Inc., CIBC World Markets Inc., RBC Dominion Securities Inc., TD Securities Inc., HSBC Securities (Canada) Inc., National Bank Financial Inc., Desjardins Securities Inc. and Laurentian Bank Securities Inc. Interest on the Notes is payable semi-annually. From the date of issue to, but excluding December 31, 2018, the rate of interest on the Notes will be fixed at 10.221 per cent per annum. Starting on December 31, 2018, and on every fifth anniversary after such date, the rate of interest on the Notes will be reset. On or after December 31, 2013, the Trust may, at its option and subject to certain conditions, redeem the Notes, in whole or in part. The deal was announced on December 12, 2008, and closed on December 18, 2008.

Bank of Montreal was advised by in-house counsel Blair Morrison and assisted by Rick Fullerton, Kashif Zaman and Neil Said (corporate), and Lara Friedlander and Helen Ferrigan (tax) of Osler, Hoskin & Harcourt LLP.

BMO Nesbitt Burns Inc. and the syndicate of underwriters were advised by David Judson, Andrew Parker and Matthew Appleby (business law), together with Barry Ryan, as well as Gabrielle M. Richards (tax) of McCarthy Tétrault LLP.

Lawyer(s)

Neil Said Blair F. Morrison Richard J. Fullerton David A. Judson Matthew Appleby Lara G. Friedlander Kashif Zaman Andrew C. Parker Helen Ferrigan