HG bonds: Bank of Montreal prints $3B of senior, subordinated notes; terms

Bank of Montreal today completed a $3 billion, three-part offering across 2025 unsecured notes in floating- and fixed-rate formats, along with 2037 (non-call 10) subordinated notes.

The Canadian bank tapped the market three times last year. Most recently, in September it placed a $3.7 billion, four-part offering across 2023 and 2026 notes in floating- and fixed-rate formats. Last July, it printed a $1.7 billion offering of 2024 notes, in two parts, across a floating-rate tranche at Sofr+32, and a 0.625% fixed-rate issue at T+27. In January 2021, BMO completed a $1 billion offering of 0.949% six-year (non-call five) fixed-to-floating unsecured notes due Jan. 22, 2027, at T+50.

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 2020, due to the COVID-19 pandemic. It affirmed its ratings and outlook on Dec. 21, 2021, and noted that the outlook remained negative due to its announced acquisition of Bank of the West, as "the acquisition of BOW has extended Fitch's time horizon for overall outlook resolution due to the integration risks, and Fitch's revised view on BMO's capital and business profile."

Terms: