Royal Bank of Canada announces preferred share issue
TORONTO, September 8, 2008 — Royal Bank of Canada
(RY on TSX and NYSE) today announced a domestic public offering
of $225 million of Non-Cumulative, 5 year rate reset Preferred
Shares Series AJ.
The bank will issue 9 million Preferred Shares Series AJ
priced at $25 per share and holders will be entitled to receive
non-cumulative quarterly fixed dividends for the initial period
ending February 24, 2014 in the amount of $1.25 per share,
to yield 5.0 per cent annually. The bank has granted the Underwriters
an option, exercisable in whole or in part, to purchase up
to an additional 3 million Preferred Shares at the same offering
price.
Subject to regulatory approval, on or after February 24,
2014, the bank may redeem the Preferred Shares Series AJ in
whole or in part at par. Thereafter, the dividend rate will
reset every five years at a rate equal to 1.93% over the 5-year
Government of Canada bond yield. Holders of Preferred Shares
Series AJ will, subject to certain conditions, have the right
to convert all or any part of their shares to non-cumulative
floating rate preferred shares Series AK (the "Preferred
Shares Series AK") on February 24, 2014 and on February
24 every five years thereafter.
Holders of the Preferred Shares Series AK will be entitled
to receive a non-cumulative quarterly floating dividend at
a rate equal to the 3-month Government of Canada Treasury
Bill yield plus 1.93%. Holders of Preferred Shares Series
AK will, subject to certain conditions, have the right to
convert all or any part of their shares to Preferred Shares
Series AJ on February 24, 2019 and on February 24 every five
years thereafter.
The offering will be underwritten by a syndicate led by RBC
Capital Markets. The expected closing date is September 16,
2008.
The net proceeds of this transaction will be used for general
business purposes and will strengthen the bank's capital ratios.
- 30 -
For further information, please contact:
Investor Contacts:
Shirley Boudreau,
Shareholder Relations Officer, Toronto - (416) 955-7806, shirley.boudreau@rbc.com
Media Contact:
Beja Rodeck,
Media Relations, Toronto - (416) 974-5506, toll-free 1-888-880-2173,
beja.rodeck@rbc.com
Or visit the site: http://www.rbc.com/investorrelations
|
