BMO.PR.Z – Series 35 Prospectus – BMO Preferred Shares

The following is a  set of excerpts from the prospectus document for the Non-Cumulative Perpetual Class B Preferred Shares, Series 35 (Non-Viability Contingent Capital (NVCC)) . The excerpts, highlight the most relevant information, an investor should know when analyzing this preferred. A link to the prospectus is provided lower in this page.  The original document for BMO.PR.Z – Series 35 Prospectus – BMO Preferred Shares was used for the excerpts and the important information was highlighted for quick access.

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Excerpt: Size and initial yield

July 22, 2015 $150,000,000 6,000,000 Non-Cumulative Perpetual Class B Preferred Shares, Series 35 (Non-Viability Contingent Capital (NVCC)) The holders of Non-Cumulative Perpetual Class B Preferred Shares, Series 35 (Non-Viability Contingent Capital (NVCC)) (the “Preferred Shares Series 35”) of Bank of Montreal (the “Bank”) will be entitled to receive fixed non-cumulative preferential cash dividends, payable quarterly on the 25th day of February, May, August and November in each year, or if such day is not a business day, on the next business day, as and when declared by the board of directors of the Bank (the “Board of Directors”), at a rate of 5.00% or $1.2500 per share per annum. The initial dividend, if declared, shall be payable on November 25, 2015 and shall be $0.40753 per share, based on the anticipated closing date of July 29, 2015. See “Details of the Offering”.

Excerpt: Conversion Terms

 Upon the occurrence of a Trigger Event (as defined herein), each outstanding Preferred Share Series 35 will automatically and immediately be converted, without the consent of the holders thereof, into that number of fully paid common shares of the Bank (the “Common Shares”) determined by dividing $25.00 plus any declared but unpaid dividends in respect of such Preferred Shares Series 35. Investors should therefore carefully consider the disclosure with respect to the Bank, the Preferred Shares Series 35, the Common Shares and the consequences of a Trigger Event included and incorporated by reference in this prospectus supplement and the accompanying short form base shelf prospectus of the Bank dated March 13, 2014 (the “Prospectus”). See “Details of the Offering”. Subject to the provisions of the Bank Act (Canada) (the “Bank Act”), including any requirement for prior consent of the Superintendent of Financial Institutions (the “Superintendent”), and to the provisions described below under “Details of the Offering — Restrictions on Dividends and Retirement of Shares”, on and after August 25, 2020, the Bank may redeem all or any part of the then outstanding Preferred Shares Series 35, at the Bank’s option without the consent of the holder, by the payment of an amount in cash for each such share so redeemed of $25.00 plus, if redeemed before August 25, 2024, a premium, in each case together with all declared and unpaid dividends to the date fixed for redemption. See “Details of the Offering — Redemption”.

BMO.PR.Z – Series 35 Prospectus – BMO Preferred Shares. Original Document

I have presented the most important information regarding the Series 51 preferreds. If you need to go through the original and complete document for BMO.PR.Z – Series 35 Prospectus – BMO Preferred Shares is available here.