Royal Bank of Canada announces preferred share issue
TORONTO, January 21, 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 AR.
The bank will issue 8.0 million Preferred Shares Series AR
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 AR in
whole or in part at par. Thereafter, the dividend rate will
reset every five years at a rate equal to 4.50% over the 5-year
Government of Canada bond yield. Holders of Preferred Shares
Series AR 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 AS (the "Preferred
Shares Series AS") on February 24, 2014 and on February
24 every five years thereafter.
Holders of the Preferred Shares Series AS 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 4.50%. Holders of Preferred Shares Series
AS will, subject to certain conditions, have the right to
convert all or any part of their shares to Preferred Shares
Series AR 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 29,
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:
Stephanie Lu, Media Relations, (416) 974-5506
Investor Contact:
James Colburn, Investor Relations, (416) 955-7808
Or visit the site: http://www.rbc.com/investorrelations
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Media contact:
Stephanie Lu, Media Relations, (416) 974-5506
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