(March 12 – 15:00 ET) – Bank of Montreal says that BMO Capital Trust will issue $400 million in Trust Capital Securities – Series B (BMO BOaTS) on March 13. The securities will qualify as Tier 1 capital of the bank for regulatory purposes.

BMO BOaTS have no maturity date, but are redeemable at the option of BMO Capital Trust commencing June 30, 2006.

Subject to BMO Capital Trust’s right to redeem and the bank’s right to acquire the BMO BOaTS, commencing June 30, 2011, holders have the right to exchange their BMO BOaTS for preferred shares of the bank, which are immediately convertible into common shares of the Bbnk. The bank says that under certain circumstances, BMO BOaTS will be exchanged automatically for BMO preferred shares.