{"id":197,"date":"2006-10-23T10:31:19","date_gmt":"2006-10-23T14:31:19","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=197"},"modified":"2006-10-23T10:31:19","modified_gmt":"2006-10-23T14:31:19","slug":"royal-bank-new-issue-460-perp","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=197","title":{"rendered":"Royal Bank New Issue : 4.60% Perp"},"content":{"rendered":"<p>Royal Bank has <a href=\"http:\/\/www.rbc.com\/newsroom\/20061023issue.html\">announced<\/a> a new issue of perpetual preferred shares, Series AC. The issue size is smaller than their previous issues, only 8 million shares ($200-million p.v.)<\/p>\n<p>Pays $1.15 p.a., quarterly. Initial dividend (if declared) $0.362329 payable Feb 24, 2007, based on a closing date of Nov 1, 2006.<\/p>\n<p>Redemption Schedule is:<\/p>\n<ul>\n<li>Nov 24, 2011 &#8211; Nov 23, 2012 : $26.00<\/li>\n<li>Nov 24, 2012 &#8211; Nov 23, 2013 : $25.75<\/li>\n<li>Nov 24, 2013 &#8211; Nov 23, 2014 : $25.50<\/li>\n<li>Nov 24, 2014 &#8211; Nov 23, 2015 : $25.25<\/li>\n<li>On and after Nov 24, 2015 : $25.00<\/li>\n<\/ul>\n<p><a href=\"http:\/\/www.dbrs.com\">DBRS<\/a> rates Royal preferreds as Pfd-1. The information I have indicates this issue is rated Pfd-1(low), but I suspect that this is a misprint &#8211; especially since there is at least one other obvious misprint in the term sheet I have.<\/p>\n<p>I will calculate a preliminary valuation of these shares later today.<\/p>\n<p>\u00a0<strong>Update<\/strong> : The new issue (in the table as RY.PR.?)\u00a0looks quite reasonable:<\/p>\n<div align=\"center\">\n<table border=\"1\">\n<tr>\n<td colspan=\"4\">Curve Price Components (Taxable Curve)<\/td>\n<\/tr>\n<tr>\n<td>Issue<\/td>\n<td>RY.PR.A<\/td>\n<td>RY.PR.B<\/td>\n<td>RY.PR.?<\/td>\n<\/tr>\n<tr>\n<td>Dividend<\/td>\n<td>$1.1125<\/td>\n<td>$1.1750<\/td>\n<td>$1.1500<\/td>\n<\/tr>\n<tr>\n<td>Price due to base-rate<\/td>\n<td>23.01<\/td>\n<td>23.90<\/td>\n<td>23.39<\/td>\n<\/tr>\n<tr>\n<td>Price due to short-term<\/td>\n<td>0.09<\/td>\n<td>0.09<\/td>\n<td>0.09<\/td>\n<\/tr>\n<tr>\n<td>Price due to long-term<\/td>\n<td>0.54<\/td>\n<td>0.56<\/td>\n<td>0.52<\/td>\n<\/tr>\n<tr>\n<td>Price due to error<\/td>\n<td>-0.03<\/td>\n<td>-0.03<\/td>\n<td>0<\/td>\n<\/tr>\n<tr>\n<td><strong>Intrinsic Value<\/strong><\/td>\n<td>23.61<\/td>\n<td>24.52<\/td>\n<td>24.00<\/td>\n<\/tr>\n<tr>\n<td>Liquidity<\/td>\n<td>1.45<\/td>\n<td>1.51<\/td>\n<td>~1.45<\/td>\n<\/tr>\n<tr>\n<td><strong>Total Value (rounding)<\/strong><\/td>\n<td>25.06<\/td>\n<td>26.02<\/td>\n<td>25.45<\/td>\n<\/tr>\n<\/table>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Royal Bank has announced a new issue of perpetual preferred shares, Series AC. The issue size is smaller than their previous issues, only 8 million shares ($200-million p.v.) Pays $1.15 p.a., quarterly. Initial dividend (if &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[17],"tags":[],"class_list":["post-197","post","type-post","status-publish","format-standard","hentry","category-new-issues"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/197","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=197"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/197\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=197"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=197"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=197"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}