Bank of Montreal’s USD750 million Limited Recourse Capital Notes offering

The Notes constitute subordinated indebtedness of the Bank and the net proceeds from the offering will qualify as Additional Tier 1 capital of the Bank for regulatory purposes. This was the Bank’s second U.S. registered offering of limited recourse capital notes. 

Concurrently with the issuance of the Notes, the Bank will issue 750,000 Non-Cumulative 5-Year Fixed Rate Reset Class B Preferred Shares, Series 54 (Non-Viability Contingent Capital (NVCC)) to be held in a limited recourse trust to satisfy any claims by holders of the Notes against the Bank in the case of an event of default or other recourse event in respect of the Notes. 

Bank of Montreal is the eighth largest bank in North America by assets, with total assets of $1.4 trillion as of April 30, 2024. Serving customers for 200 years and counting, the Bank provides a broad range of personal and commercial banking, wealth management, global markets and investment banking products and services to 13 million customers across Canada, the United States and in select markets globally.

The A&O Shearman team was led by partners Ryan Robski (Toronto/New York – U.S. Capital Markets) and Jason Lehner (Toronto/New York – U.S. Capital Markets) and associates Tianwei Liu (New York – U.S. Capital Markets) and Hunter Steitle (New York – U.S. Capital Markets) and supported by partner Larry Crouch (Menlo Park – Tax) and associates Daniel Kachmar (New York – Tax) and Taylor Pugliese (New York – Financial Services Advisory & Regulatory).