Products and Services

BMO will act as agent, lead arranger, and/or underwriter for clients with larger credit needs that can only be provided by more than one lender.

Typically, as a borrower grows, a number of different credit facilities can arise or evolve over time with different financial institutions. Usually these involve different terms and conditions which must all be negotiated separately by the borrower, which can be cumbersome, time consuming, and administratively expensive – in addition to not fulfilling the borrower’s overall needs.

Corporate Finance Division is committed to grow with our mid-market clients as their needs evolve from simpler bilateral or club deals, to more complex multi-jurisdictional, multi-lender transactions through our specialized group specifically designed to meet these needs.

Best Efforts Arranged Transaction:

• Bank of Montreal as agent and lead bank acts on behalf of the borrower to arrange syndication and negotiation of all of the loan documentation between all lenders and handles all the ongoing loan administration.
• Our extensive market knowledge, particular expertise and ability to execute is designed to give the best advice and raise all the required funds for our clients on the best market terms then available.
• Borrower continues to maintain direct relationship as desired with syndicate lenders and existing relationships continue to exist.
• There is no certainty of funds from the borrower’s perspective as no underwriting risk is assumed by Bank of Montreal, but all in costs to the borrower are lower as well.

Fully Underwritten Transaction:

• Similar to a Best Efforts Arranged Transaction except Bank of Montreal provides full funding in advance of syndication assuring certainty of funds to the borrower.
• Bank of Montreal as Underwriter invites other lenders to participate in the transaction, in consultation with the borrower usually after transaction close.
• Higher cost option as underwriting and market risk is assumed by the Bank.
• Most appropriate when Borrower needs the entire funds in a short time frame with a date certain.