The Royal Bank decided to join BMO and Scotia in issuing a new 4.5% Perpetual this week.
This one is for 10-million shares ($250-million), with an anticipated settlement date of January 19. It’s designated “Non-Cumulative First Preferred Shares, Series AE” and is a bought deal.
The redemption schedule is:
| Redemption Schedule, RY Series AE | ||
| From | To | Price |
| 2012-2-24 | 2013-2-23 | $26.00 |
| 2013-2-24 | 2014-2-23 | $25.75 |
| 2014-2-24 | 2015-2-23 | $25.50 |
| 2015-2-24 | 2016-2-23 | $25.25 |
| 2016-2-24 | INFINITE DATE | $25.00 |
More later.
[…] TD posted the last trade, a cross of 68,300 at $25.40. Now with a pre-tax bid-YTW of 4.53% based on a bid of $25.30 and a call 2016-3-1 at $25.00. Since the YTW exceeds the issue yield of the Royal, Scotia and BMO new issues, as well as having a certain amount of interest rate protection due to its higher coupon, some may conclude that this old issue is more attractive than the new ones. The volume indicates that, perhaps, many have done just that. I’m not one of them, but then, I’m a capital-gains fan. An equal number of shares were sold, of course, but the price was up today, at the issue gained 0.3172% (bid/bid). […]
[…] The pre-tax YTW of TD.PR.O is 4.14%, based on the January 12 closing bid of $26.15. So the first thing we want to know is: why accept 4.14% when there are new issues (new bank issues, what’s more, from Royal, Scotia and BMO that yield 4.50%? […]
Do you know when the new BNS and RY issues are scheduled to close, and whether the new BMO issue is still scheduled to close on January 17?
According to RBC the expected closing date on the new issue is January 19, 2007.
According to BMO the expected closing date on their new issue is January 17, 2007.
[…] Update (for linking!) 2007-01-27 : This issue was announced on January 10. […]