Can’t tell your players without a programme! Royal is continuing the pattern of opportunistic issuance I predicted in early February.
They have now announced the following:
Issue: 4.50% Non-Cumulative First Preferred Shares, Series AG
Size: 10-million shares, = $250-million @ the 25.00 issue price.
Redemption: Redeemable at $26.00 commencing May 24, 2012, call price declines by $0.25 every May 24 thereafter until redeemable at $25.00 from May 24, 2016 on.
Provisional ratings: Pfd-1 by DBRS, P-1 (low) by S&P
Closing: The expected closing date is April 26.
More Later.
Later, not much more: You know what? I’m not going to bother reviewing this one much at all. The dividend rate is identical to RY.PR.D & RY.PR.E, while the redemption schedule differs only in that the new issue’s schedule starts three months later. The curve price of the two comparables is in the 25.40-50 range, but a large part of this is the dividend payable on these issues – they both go ex-Dividend on 2007-04-23.
The new issue is entirely reasonable and maybe just a little bit cheap according to its curve price.
[…] The new issue of Royal Bank 4.5% perpetuals announced April 17 settled today and met a very poor reception, trading in a range of 24.48-60 and closing at 24.49-50, 20×12. […]