BMO.PR.O Settles at Premium on Heavy Volume

BMO.PR.O, the 6.50%+458 Fixed-Reset announced on March 11 has settled successfully, trading 550,271 shares in a range of 24.90-20 before closing at 25.15-20, 8×50.

Issue size was $150-million plus a greenshoe for $75-million. No announcement has yet been made regarding take-up of the underwriters’ option; but with such heavy volume I’ll bet a nickel it was exercised in full.

Five-Year Canadas have come in considerably since the announcement and are now at 1.58%. This means that the yield-to-Perpetuity of the issue is now a more modest than expected 6.27%, based on a bid of 25.15 and a limitMaturity price of 25.10.

This issue has been added to the HIMIPref™ Fixed-Reset sub-index.

This entry was posted on Friday, March 20th, 2009 at 8:34 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

One Response to “BMO.PR.O Settles at Premium on Heavy Volume”

  1. PrefBlog » Blog Archive » Moody’s Puts BMO on Outlook Negative says:
    June 1, 2009 at 5:45 pm

    […] BMO.PR.J, BMO.PR.K & BMO.PR.L and the FixedResets BMO.PR.M (+165), BMO.PR.N (+383) & BMO.PR.O […]

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