06:28 AM EDT, 07/10/2024 (MT Newswires) -- Bank of Montreal ( NRGD ) (BMO.TO, BMO) overnight Tuesday priced its US$750 million of non-viability contingent capital Additional Tier 1 Limited Recourse Capital Notes, Series 5.

The notes will bear interest at a rate of 7.300% annually, payable quarterly, for the initial period ending, but excluding Nov. 26, 2034.

Thereafter, the interest rate on the notes will reset every five years at a rate equal to the prevailing five-year U.S. Treasury Rate plus 3.01%. The notes will mature on Nov. 26, 2084.

The offering is expected to close on July 17.

The bank will use the proceeds for general banking purposes, which may include the redemption of outstanding capital securities of the bank and/or repayment of other outstanding liabilities.