Royal Bank of Canada announces preferred share issue
TORONTO, November 24, 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 AN.
The bank will issue 9.0 million Preferred Shares Series AN
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 $1.5625 per share,
to yield 6.25% per cent annually. The bank has granted the
Underwriters an option, exercisable in whole or in part, to
purchase up to an additional 4.0 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 AN in
whole or in part at par. Thereafter, the dividend rate will
reset every five years at a rate equal to 3.50% over the 5-year
Government of Canada bond yield. Holders of Preferred Shares
Series AN 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 AO (the "Preferred
Shares Series AO") on February 24, 2014 and on February
24 every five years thereafter.
Holders of the Preferred Shares Series AO 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 3.50%. Holders of Preferred Shares Series
AO will, subject to certain conditions, have the right to
convert all or any part of their shares to Preferred Shares
Series AN 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 December 8,
2008.
Earlier this quarter we issued $300 million of Preferred
Share Series AL, which together with this transaction will
add $525 million to Tier 1 capital. We routinely undertake
funding transactions to maintain strong capital ratios and
a cost effective capital structure. Net proceeds from this
transaction will be used for general business purposes.
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For further information, please contact:
Media Contact:
Stephanie Lu, Head, Media Relations, (416) 974-5506
Investor Contacts:
Josie Merenda, Investor Relations, (416) 974-2044
Or visit the site: http://www.rbc.com/investorrelations
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