Royal Bank of Canada announces preferred share issue
TORONTO, March 24, 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 AV.
The bank will issue 8 million Preferred Shares Series AV
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 AV in whole
or in part at par. Thereafter, the dividend rate will reset
every five years at a rate equal to 4.42 per cent over the
5-year Government of Canada bond yield. Holders of Preferred
Shares Series AV 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 AW (the "Preferred
Shares Series AW") on August 24, 2014 and on August 24
every five years thereafter.
Holders of the Preferred Shares Series AW 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 4.42 per cent. Holders of Preferred Shares
Series AW will, subject to certain conditions, have the right
to convert all or any part of their shares to Preferred Shares
Series AV 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 April 1, 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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