Royal Bank of Canada has announced:
its intention to redeem all of its issued and outstanding Non-Cumulative First Preferred Shares Series AD (the “Series AD shares”) on November 24, 2018, for cash at a redemption price of $25.00 per share to be paid on November 26, 2018. Royal Bank of Canada also announced its intention to redeem all of its issued and outstanding Non-Cumulative Floating Rate First Preferred Shares Series AK (the “Series AK shares”) and Non-Cumulative 5-Year Rate Reset First Preferred Shares Series AJ (the “Series AJ shares”) and AL (the “Series AL shares”) on February 24, 2019, for cash at a redemption price of $25.00 per share to be paid on February 25, 2019.
There are 10,000,000 Series AD shares outstanding, representing $250 million of capital; 2,421,185 Series AK shares outstanding, representing approximately $61 million of capital; 13,578,815 Series AJ shares outstanding, representing approximately $339 million of capital; and 12,000,000 Series AL shares outstanding, representing $300 million of capital. The redemptions will be financed out of the general corporate funds of Royal Bank of Canada.
The final quarterly dividend of $0.28125 for each of the Series AD shares will be paid separately from the redemption price and in the usual manner on November 23, 2018 to shareholders of record on October 25, 2018. After such dividend payment, the holders of Series AD shares will cease to be entitled to dividends. The final quarterly dividends for each of the Series AK, AJ and AL shares, subject to declaration by the board of directors on November 27, 2018, will be paid separately from the redemption price for each of the Series AK, Series AJ and Series AL Shares and in the usual manner on February 22, 2019 to shareholders of record on January 24, 2019. After such dividend payments, the holders of Series AK, AJ and AL shares will cease to be entitled to dividends.
RY.PR.D is a 4.5% Straight Perpetual that was announced 2006-12-4 and commenced trading 2006-12-13. It has been assigned to the DeemedRetractibles sub-index since the imposition of the NVCC rules in 2011.
RY.PR.I was issued as a FixedReset, 5.00%+193, that commenced trading 2008-9-16 after being announced 2008-9-8. It was not called for redemption with others in the 2014-2-24 batch, and the extension became official on 2014-1-21, with the reset rate of 3.52% announced 2014-1-24. There was 15% conversion to RY.PR.K, its FloatingReset counterpart. The issue is currently assigned to the FixedReset Bank Non-NVCC Compliant subindex.
As noted above, RY.PR.K came into existence via partial conversion from RY.PR.I. It was posted for trading 2014-2-24. It is currently assigned to the “Scraps” sub-index due to low trading volume.
RY.PR.L was issued as a FixedReset, 5.60%+267, that commenced trading 2008-11-3 after being announced 2008-10-23 – very exciting times for the market! Like RY.PR.I, above, it was not called for redemption on 2014-2-24, with the extension becoming official on 2014-1-21 and the reset rate of 4.26% announced 2014-1-24. There was no conversion to FloatingReset. The issue is currently assigned to the FixedReset Bank Non-NVCC Compliant subindex.
This entry was posted on Tuesday, October 23rd, 2018 at 8:45 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed.
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RY.PR.D, RY.PR.I, RY.PR.K and RY.PR.L To Be Redeemed
Royal Bank of Canada has announced:
RY.PR.D is a 4.5% Straight Perpetual that was announced 2006-12-4 and commenced trading 2006-12-13. It has been assigned to the DeemedRetractibles sub-index since the imposition of the NVCC rules in 2011.
RY.PR.I was issued as a FixedReset, 5.00%+193, that commenced trading 2008-9-16 after being announced 2008-9-8. It was not called for redemption with others in the 2014-2-24 batch, and the extension became official on 2014-1-21, with the reset rate of 3.52% announced 2014-1-24. There was 15% conversion to RY.PR.K, its FloatingReset counterpart. The issue is currently assigned to the FixedReset Bank Non-NVCC Compliant subindex.
As noted above, RY.PR.K came into existence via partial conversion from RY.PR.I. It was posted for trading 2014-2-24. It is currently assigned to the “Scraps” sub-index due to low trading volume.
RY.PR.L was issued as a FixedReset, 5.60%+267, that commenced trading 2008-11-3 after being announced 2008-10-23 – very exciting times for the market! Like RY.PR.I, above, it was not called for redemption on 2014-2-24, with the extension becoming official on 2014-1-21 and the reset rate of 4.26% announced 2014-1-24. There was no conversion to FloatingReset. The issue is currently assigned to the FixedReset Bank Non-NVCC Compliant subindex.
This entry was posted on Tuesday, October 23rd, 2018 at 8:45 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.