Royal Bank of Canada announces preferred share issue
TORONTO, October 23, 2008 — Royal Bank of Canada
(RY on TSX and NYSE) today announced a domestic public offering
of $200 million of Non-Cumulative, 5 year rate reset Preferred
Shares Series AL.
The bank will issue 8 million Preferred Shares Series AL
priced at $25 per share and holders will be entitled to receive
non-cumulative quarterly fixed dividend for the initial period
ending February 24, 2014 in the amount of $1.40 per share,
to yield 5.60% per cent annually. The bank has granted the
Underwriters an option, exercisable in whole or in part, to
purchase up to an additional 4 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 AL in
whole or in part at par. Thereafter, the dividend rate will
reset every five years at a rate equal to 2.67% over the 5-year
Government of Canada bond yield. Holders of Preferred Shares
Series AL 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 AM (the "Preferred
Shares Series AM") on February 24, 2014 and on February
24 every five years thereafter.
Holders of the Preferred Shares Series AM 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 2.67%. Holders of Preferred Shares Series
AM will, subject to certain conditions, have the right to
convert all or any part of their shares to Preferred Shares
Series AL 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 November 3,
2008.
This issuance is part of RBC's normal course funding program.
As in the past, the net proceeds of this transaction will
be used for general business purposes and will strengthen
the bank's capital ratios.
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For further information, please contact:
Investor Contacts:
Josie Merenda, Investor Relations, (416) 974-2044
Media Contact:
Beja Rodeck, Media Relations
(416) 974-5506, toll-free 1-888-880-2173
Or visit the site: http://www.rbc.com/investorrelations
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