Royal Bank of Canada announces preferred share issue
TORONTO, April 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 AX.
The bank will issue 8 million Preferred Shares Series AX
priced at $25 per share and holders will be entitled to receive
non-cumulative quarterly fixed dividend for the initial period
ending November 24, 2014 in the amount of $1.525 per share,
to yield 6.10 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 November 24,
2014, the bank may redeem the Preferred Shares Series AX in
whole or in part at par. Thereafter, the dividend rate will
reset every five years at a rate equal to 4.13 per cent over
the 5-year Government of Canada bond yield. Holders of Preferred
Shares Series AX 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 AY (the "Preferred
Shares Series AY") on November 24, 2014 and on November
24 every five years thereafter.
Holders of the Preferred Shares Series AY 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 4.13 per cent. Holders of Preferred Shares
Series AY will, subject to certain conditions, have the right
to convert all or any part of their shares to Preferred Shares
Series AX on November 24, 2019 and on November 24 every five
years thereafter.
The offering will be underwritten by a syndicate led by RBC
Capital Markets. The expected closing date is April 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:
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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