RY.PR.M To Reset At 3.00%

Royal Bank of Canada has announced (on October 26):

the applicable dividend rates for its Non-Viability Contingent Capital (NVCC) Non-Cumulative 5-Year Rate Reset First Preferred Shares, Series BF (RY.PR.M on TSX ) (the “Series BF shares”) and NVCC Non-Cumulative Floating Rate First Preferred Shares, Series BG (the “Series BG shares”).

With respect to any Series BF shares that remain outstanding after November 24, 2020, holders will be entitled to receive quarterly fixed rate non-cumulative preferential cash dividends, as and when declared by the Board of Directors of Royal Bank of Canada, subject to the provisions of the Bank Act (Canada).

The dividend rate for the 5-year period from and including November 24, 2020 to, but excluding, November 24, 2025 will be 3.00% for the Series BF shares, being equal to the 5-Year Government of Canada bond yield determined as of October 26, 2020 plus 2.62%, as determined in accordance with the terms of the Series BF shares.

With respect to any Series BG shares that may be issued on November 24, 2020, holders will be entitled to receive quarterly floating rate non-cumulative preferential cash dividends, calculated on the basis of the actual number of days elapsed in such quarterly period divided by 365, as and when declared by the Board of Directors of Royal Bank of Canada, subject to the provisions of the Bank Act (Canada).

The dividend rate for the floating rate period from and including November 24, 2020 to, but excluding, February 24, 2021 will be 2.71% for the Series BG shares, being equal to the 3-month Government of Canada Treasury Bill yield determined as of October 26, 2020 plus 2.62%, as determined in accordance with the terms of the Series BG shares.

Beneficial owners of Series BF shares who wish to exercise their conversion rights should instruct their broker or other nominee to exercise such rights on or prior to the deadline for notice of intention to convert, which is 5:00 p.m. (EST) on November 9, 2020.

RY.PR.M is a FixedReset, 3.60%+262, NVCC-compliant, that commenced trading 2015-3-15 after being announced 2015-3-5. The company announced extension earlier in October. The issue is tracked by HIMIPref™ and is assigned to the FixedReset-Discount subindex.

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