Royal Bank of Canada announces preferred share issue
TORONTO, December 4, 2006 — Royal Bank of Canada
(RY on TSX and NYSE) today announced a domestic public offering
of $200 million of Non-Cumulative First Preferred Shares Series
AD (the 'Preferred Shares').
The bank will issue 8 million Preferred Shares priced at
$25 per share and holders will be entitled to receive non-cumulative
preferential quarterly dividends in the amount of $0.28125
per share, to yield 4.50 per cent annually. The bank has granted
the Underwriters an option, exercisable in whole or in part,
to purchase up to an additional 2 million Preferred Shares
at the same offering price.
Subject to regulatory approval, on or after February 24,
2012, the bank may redeem the Preferred Shares in whole or
in part at a declining premium.
The offering will be underwritten by a syndicate led by RBC
Capital Markets Inc. The expected closing date is December
13, 2006.
The net proceeds of this transaction will be used for general
business purposes and will strengthen the bank's capital ratios.
-30-
For more information, please contact:
Media Contact:
Beja Rodeck, Media Relations, Toronto - (416) 974-5506
Investor Contacts:
David Mun, Investor Relations, Toronto – (416) 955-7808
Shirley Boudreau, Shareholder Relations Officer,
Toronto – (416) 955-7806
|
