New Issue: RY Straight Perpetual, 4.90%, NVCC

The Royal Bank of Canada has announced:

a domestic public offering of Non-Cumulative, Preferred Shares Series BI.

Royal Bank of Canada will issue 6 million Preferred Shares Series BI priced at $25 per share to raise gross proceeds of $150 million. The bank has granted the Underwriters an option, exercisable in whole or in part, to purchase up to an additional 2 million Preferred Shares Series BI at the same offering price.

The Preferred Shares Series BI will yield 4.90 per cent annually, payable quarterly, as and when declared by the Board of Directors of Royal Bank of Canada.

Subject to regulatory approval, on or after November 24, 2020, the bank may redeem the Preferred Shares Series BI in whole or in part at a declining premium.

The offering will be underwritten by a syndicate led by RBC Capital Markets. The expected closing date is July 22, 2015.

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.

It’s very nice to see another Straight Perpetual coming out, but disappointing that it has the same coupon as RY.PR.W and RY.PR.N!

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