Royal Bank of Canada announces preferred share issue
TORONTO, January 6, 2009 — 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 AP.
The bank will issue 8.0 million Preferred Shares Series AP
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% annually. The bank has granted the Underwriters
an option, exercisable in whole or in part, to purchase up
to an additional 3.0 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 AP in
whole or in part at par. Thereafter, the dividend rate will
reset every five years at a rate equal to 4.19% over the 5
year Government of Canada bond yield. Holders of Preferred
Shares Series AP 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 AQ (the "Preferred
Shares Series AQ") on February 24, 2014 and on February
24 every five years thereafter.
Holders of the Preferred Shares Series AQ 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 4.19%. Holders of Preferred Shares Series
AQ will, subject to certain conditions, have the right to
convert all or any part of their shares to Preferred Shares
Series AP 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 January 14,
2009.
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:
Jackie Braden, Media Relations, (416) 974-2124
Investor Contact:
Josie Merenda, Investor Relations, (416) 974-2044
Or visit the site: http://www.rbc.com/investorrelations
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