Royal Bank of Canada has announced:
it has closed its domestic public offering of Non-Cumulative, 5-Year Rate Reset Preferred Shares Series BB. Royal Bank of Canada issued 20 million Preferred Shares Series BB at a price of $25 per share to raise gross proceeds of $500 million.
The offering was underwritten by a syndicate led by RBC Capital Markets. The Preferred Shares Series BB will commence trading on the Toronto Stock Exchange today under the ticker symbol RY.PR.H.
The Preferred Shares Series BB were issued under a prospectus supplement dated May 27, 2014 to the bank’s short form base shelf prospectus dated December 20, 2013.
RY.PR.H is a FixedReset, 3.90%+226, NVCC-Compliant issue announced May 23. The issue will be tracked by HIMIPref™ and has been assigned to the FixedReset subindex. It is regrettable that the Toronto Exchange has recycled the ticker of the previous RY.PR.H, redeemed less than a year ago.
The issue traded a healthy 1,328,901 shares today in an unusually wide range of 24.64-99 before closing at 24.86-88, 37×72. The issue was affected by a late-afternoon collapse in the market; it was trading firmly in the 90s prior to 3pm, as reflected in the Volume Weighted Average Price: 24.944985. Vital Statistics are:
Maturity Type : Limit Maturity
Maturity Date : 2044-06-03
Maturity Price : 23.10
Evaluated at bid price : 24.86
Bid-YTW : 3.75 %
The two NVCC-compliant issues are priced comparatively with their non-compliant cousins according to Implied Volatility Theory: