HG bonds: Bank of Montreal places bail-in 2027 notes below 1%; terms

Bank of Montreal today completed a $1 billion offering, at par pricing, of 0.949% six-year (non-call five) fixed-to-floating unsecured notes due Jan. 22, 2027, at T+50. The notes are subject to bail-in conversion under Canadian law.

The Bank of Montreal completed three transactions in the U.S. bond market in 2020. Most recently, in December, the Canadian bank completed a $1.5 billion, two-part offering of three-year notes due Dec. 8, 2023, across floating-rate notes at 35 basis points over the secured overnight financing rate and 0.45% fixed-rate notes at T+27, or 0.472%. In May 2020, it placed a $1.5 billion offering of three-year bail-in FRNs due March 10, 2023, at 68 bps over Sofr. Last April, the company printed a $1.5 billion offering of 1.85% five-year bail-in notes due May 1, 2025, at T+150, or 1.866%.

S&P Global Ratings and Moody's maintain stable outlooks on their respective A+/Aa2 issuer credit ratings.

Fitch has maintained a negative outlook on its AA- issuer rating since March due to the COVID-19 pandemic. It affirmed its ratings and outlook on Jan. 13. Terms: