Bank of Montreal Files Preliminary Prospectus Supplement for Series 7 LRCNs

Offering Overview

Bank of Montreal filed a preliminary prospectus supplement under Rule 424(b)(5) for an offering of Fixed Rate Reset Limited Recourse Capital Notes, Series 7 (NVCC) (Subordinated Indebtedness) and corresponding Non-Cumulative 5-Year Fixed Rate Reset Class B Preferred Shares, Series 56 (NVCC).

Key Terms & Structure

• Issuer: Bank of Montreal
• Security: Fixed Rate Reset Limited Recourse Capital Notes, Series 7 (NVCC Subordinated Indebtedness)
• Capital Classification: Intended to qualify as Additional Tier 1 (AT1) regulatory capital under OSFI CAR guidelines
• Maturity Date: 2086 (60-year maturity)
• Initial Interest Reset Date: 2036 (10-year initial period), resetting every 5 years thereafter based on the 5-year U.S. Treasury Rate plus a spread
• Coupon Frequency: Quarterly in arrears
• Limited Recourse Trust: In the event of non-payment of principal, interest, or redemption price, recourse is limited to the proportionate share of trust assets (initially the Series 56 Preferred Shares)
• Underwriters: BMO Capital Markets, Barclays, Citigroup, Goldman Sachs & Co. LLC, Morgan Stanley, UBS Investment Bank