PrefBlog

Royal Bank of Canada has announced:

the applicable dividend rates for its Non-Viability Contingent Capital (NVCC) Non-Cumulative 5-Year Rate Reset First Preferred Shares, Series BO (the “Series BO shares”) and NVCC Non-Cumulative Floating Rate First Preferred Shares, Series BP (the “Series BP shares”).

With respect to any Series BO shares that remain outstanding after February 24, 2024, 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 February 24, 2024 to, but excluding, February 24, 2029 will be 5.885% for the Series BO shares, being equal to the 5-Year Government of Canada bond yield determined as of January 25, 2024 plus 2.38%, as determined in accordance with the terms of the Series BO shares.

With respect to any Series BP shares that may be issued on February 24, 2024, 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 February 24, 2024 to, but excluding, May 24, 2024 will be 7.421% for the Series BP shares, being equal to the 3-month Government of Canada Treasury Bill yield determined as of January 25, 2024 plus 2.38%, as determined in accordance with the terms of the Series BP shares.

Beneficial owners of Series BO 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 February 9, 2024.

RY.PR.S was issued as a FixedReset, 4.80+238, that commenced trading 2018-11-2 after being announced 2018-10-25. Notice of extension was reported previously. The issue is tracked by HIMIPref™ and is assigned to the Fixed-Resets (Discount) subindex.

Thanks to Assiduous Reader IrateAR for bringing this to my attention!

This entry was posted on Thursday, January 25th, 2024 at 7:23 pm 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.