BMO Announces Redemption of Four Exchange Traded Notes ("ETNs")

Core Viewpoint - Bank of Montreal (BMO) plans to redeem all outstanding securities in specific series, referred to as the "Affected Securities," and will notify holders on July 11, 2024 [1][2]. Group 1: Redemption Details - The Call Settlement Amount for each series will be calculated based on the arithmetic mean of the closing Indicative Note Values during the Call Measurement Period, which spans five trading days from July 12 to July 18, 2024 [2]. - Holders of the Affected Securities can choose to hold until the Call Settlement Date or redeem them before July 11, 2024, with a waiver of the minimum early redemption size requirement [3]. Group 2: Market Impact - The Affected Securities will be delisted from the NYSE Arca exchange before trading opens on the Call Settlement Date [3]. - BMO will suspend further sales of the Affected Securities on July 11, 2024, which may affect their market value and liquidity, potentially leading to trading at a premium [4]. Group 3: Investor Considerations - Investors purchasing Affected Securities before the Call Settlement Date at a price above the Call Settlement Amount may incur losses, as will those selling before delisting for less than the Call Settlement Amount [5]. - BMO does not intend to issue or register additional Affected Securities following this announcement [4]. Group 4: Company Overview - BMO Financial Group is the eighth largest bank in North America by assets, with total assets of $1.4 trillion as of April 30, 2024, providing a wide range of financial services to 13 million customers [8].