Royal Bank of Canada announces preferred share issue
TORONTO, February 26, 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 AT.
The bank will issue 8.0 million Preferred Shares Series AT
priced at $25 per share and holders will be entitled to receive
non-cumulative quarterly fixed dividend for the initial period
ending August 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 3.0 million Preferred Shares
at the same offering price.
Subject to regulatory approval, on or after August 24, 2014,
the bank may redeem the Preferred Shares Series AT in whole
or in part at par. Thereafter, the dividend rate will reset
every five years at a rate equal to 4.06 per cent over the
5-year Government of Canada bond yield. Holders of Preferred
Shares Series AT 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 AU (the "Preferred
Shares Series AU") on August 24, 2014 and on August 24
every five years thereafter.
Holders of the Preferred Shares Series AU 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 4.06 per cent. Holders of Preferred Shares
Series AU will, subject to certain conditions, have the right
to convert all or any part of their shares to Preferred Shares
Series AT on August 24, 2019 and on August 24 every five years
thereafter.
The offering will be underwritten by a syndicate led by RBC
Capital Markets. The expected closing date is March 9, 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:
Investor Contact:
James Colburn, Investor Relations, (416) 955-7808
Media Contact:
Stephanie Lu, Media Relations, (416) 974-5506
Or visit the site: http://www.rbc.com/investorrelations
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