PrefBlog

R Split III Corp. has announced:

that the final condition required to extend the term of the Company for an additional five years to May 31, 2017, has been met. Holders of Capital Shares previously approved the extension of the term of the Company subject to the condition that a minimum of 1,405,000 Capital Shares remain outstanding after giving effect to the special retraction right (the “Special Retraction Right”).

Under the Special Retraction Right, 340,074 Capital Shares have been tendered to the Company for retraction on May 31, 2012. Holders of these shares will receive a retraction price equal to the amount, if any, by which the Unit Value exceeds $29.22. Holders of the remaining 2,469,924 Capital Shares will continue to enjoy the benefits of a leveraged participation in the capital appreciation of the Company’s portfolio of common shares (the ‘‘Royal Bank Shares’’) of Royal Bank of Canada (‘‘Royal Bank’’).

The Preferred Shares will be redeemed by the Company on May 31, 2012 in accordance with their terms at a price per share equal to the lesser of $29.22 and Unit Value. In order to maintain the leveraged “split share” structure of the Company, the Company will offer a new series of Class B Preferred Shares to be called the Class B Preferred Shares which are expected to be issued following this redemption.

R Split III Corp. is a mutual fund corporation created to hold a portfolio of common shares of the Royal Bank of Canada. Capital Shares and Preferred Shares of R Split III Corp. are listed for trading on The Toronto Stock Exchange under the symbols RBS and RBS.PR.A respectively.

RBS.PR.A was last mentioned on PrefBlog when Capital Unitholders voted in favour of the plan. RBS.PR.A is not tracked by HIMIPref™.

This entry was posted on Wednesday, April 11th, 2012 at 11:37 am 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.