RY.PR.H To Be Redeemed

Royal Bank of Canada has announced:

its intention, subject to the approval of the Office of the Superintendent of Financial Institutions (OSFI), to redeem all of its issued and outstanding Non-Cumulative First Preferred Shares Series AH (the “Series AH shares”) on July 2, 2013, for cash at a redemption price of $26.00 per share. This is comprised of the $25.00 per share original issue price plus a $1.00 per share redemption premium.

In addition, the Bank has also declared a 39-day dividend of $0.150925 per Series AH share covering the period from May 24, 2013 (the date of the last dividend payment), up to but excluding the redemption date of July 2, 2013. This results in a total amount of $26.150925 per share to be paid upon surrender of the Series AH shares.

There are 8,500,000 shares of Series AH outstanding, representing $212.5 million of capital. The redemption of the Series AH shares will be financed out of the general corporate funds of Royal Bank of Canada.

Please visit www.rbc.com/investorrelations/share-information to view tax Questions & Answers relating to this redemption.

The tax Questions & Answers make the point that for tax purposes the redemption price is $25.00 with a $1.00 Deemed Dividend; for many individuals this will make a big difference in their decision as to whether to hold the issue until redemption or to sell it into the market.

Update, 2013-6-25: Removed from TXPR.

3 Responses to “RY.PR.H To Be Redeemed”

  1. […] off 6bp and DeemedRetractibles down 9bp. Volatility was minimal – the only highlight is RY.PR.H, which was called today. Volume was […]

  2. […] Called for redemption. YTW SCENARIO Maturity Type : Call Maturity Date : 2013-07-03 Maturity Price : 26.00 Evaluated at bid price : 26.10 Bid-YTW : 2.56 % […]

  3. […] Called for redemption. YTW SCENARIO Maturity Type : Call Maturity Date : 2013-07-12 Maturity Price : 26.00 Evaluated at bid price : 26.11 Bid-YTW : 3.74 % […]

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