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TORONTO, March 22, 2022 /CNW/ – Bank of Montreal (TSX: BMO) (NYSE: BMO) (the “Bank”) today announced a public offering of 18,125,000 common shares at a price of $149.00 per common share for total gross proceeds of $2.70 billion. The offering is being underwritten on a bought-deal basis by a syndicate of underwriters led by BMO Capital Markets. The Bank has granted to the underwriters an option to purchase up to an additional 2,718,750 common shares at a price of $149.00 per common share exercisable at any time up to 30 days after closing of the offering.
The Bank intends to use the net proceeds from the offering to finance a portion of the purchase price for its previously-announced acquisition of Bank of the West and its subsidiaries (the “Acquisition”). The Bank expects to fund the Acquisition primarily with excess capital, reflecting its strong capital position and anticipated capital generation.
The anticipated closing date of the offering is March 29, 2022. Closing is subject to customary conditions, including Toronto Stock Exchange approval. The closing of the offering is not conditional on closing of the Acquisition. Common shares sold pursuant to the offering will remain outstanding whether or not the Acquisition is completed.
The common shares will be offered for sale to the public in all of the provinces and territories of Canada by way of a prospectus supplement to the Bank’s…
