Exhibit 99.1
News
FOR IMMEDIATE RELEASE
Bank of Montreal Announces Dividend Rates on Non-Cumulative 5-Year Rate Reset Class B Preferred Shares, Series 33 (NVCC) and Non-Cumulative Floating Rate Class B Preferred Shares, Series 34 (NVCC)
TORONTO, July 27, 2020 – Further to the announcement by Bank of Montreal (the “Bank”) (TSX:BMO)(NYSE:BMO) on June 29, 2020, the Bank today announced the applicable dividend rates for its Non-Cumulative 5-Year Rate Reset Class B Preferred Shares, Series 33 (Non-Viability Contingent Capital (NVCC)) (the “Preferred Shares Series 33”) and Non-Cumulative Floating Rate Class B Preferred Shares, Series 34 (Non-Viability Contingent Capital (NVCC)) (the “Preferred Shares Series 34”).
With respect to any Preferred Shares Series 33 that remain outstanding after August 25, 2020, commencing as of such date, holders thereof will be entitled to receive fixed rate non-cumulative preferential cash dividends on a quarterly basis, as and when declared by the Board of Directors of the Bank and subject to the provisions of the Bank Act (Canada). The dividend rate for the five-year period commencing on August 25, 2020, and ending on August 24, 2025, will be 3.054 per cent, being equal to the sum of the five-year Government of Canada bond yield as at July 27, 2020 (being the first business day following the dividend rate calculation date of July 26, 2020, established in the Preferred Shares Series 33 prospectus, which falls on a Sunday), plus 2.71 per cent, as determined in accordance with the terms of the Preferred Shares Series 33.
With respect to any Preferred Shares Series 34 that may be issued on August 25, 2020, holders thereof will be entitled to receive floating rate non-cumulative preferential cash dividends on a quarterly basis, calculated on the basis of the actual number of days elapsed in each quarterly floating rate period divided by 365, as and when declared by the Board of Directors of the Bank and subject to the provisions of the Bank Act (Canada). The dividend rate for the three-month period commencing on August 25, 2020, and ending on November 24, 2020, will be 2.878 per cent, being equal to the sum of the three-month Government of Canada Treasury bill yield as at July 27, 2020 (being the first business day following the dividend rate calculation date of July 26, 2020), plus 2.71 per cent, as determined in accordance with the terms of the Preferred Shares Series 34.
