{"id":24291,"date":"2014-01-24T21:35:56","date_gmt":"2014-01-25T02:35:56","guid":{"rendered":"http:\/\/prefblog.com\/?p=24291"},"modified":"2014-01-24T21:35:56","modified_gmt":"2014-01-25T02:35:56","slug":"ry-pr-i-to-reset-at-3-52-ry-pr-l-at-4-26","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=24291","title":{"rendered":"RY.PR.I To Reset at 3.52%; RY.PR.L at 4.26%"},"content":{"rendered":"

Royal Bank of Canada has announced<\/a>:<\/p>\n

the applicable dividend rates for its Non-Cumulative 5-Year Rate Reset First Preferred Shares Series AJ (the “Series AJ shares”) and Series AL (the “Series AL shares”) and Non-Cumulative Floating Rate First Preferred Shares Series AK (the “Series AK shares”) and Series AM (the “Series AM shares”).<\/p>\n

With respect to any Series AJ and Series AL shares that remain outstanding after February 24, 2014, holders of the Series AJ and Series AL shares will be entitled to receive quarterly fixed non-cumulative preferential cash dividends, as and when declared by the Board of Directors of the Royal Bank of Canada, subject to the provisions of the Bank Act (Canada).<\/p>\n

The dividend rate for the 5-year period from and including February 24, 2014 to but excluding February 24, 2019 will be 3.52% for Series AJ shares, being equal to the 5-Year Government of Canada bond yield determined as of January 24, 2014 plus 1.93%, as determined in accordance with the terms of the Series AJ shares.<\/p>\n

The dividend rate for the 5-year period from and including February 24, 2014 to but excluding February 24, 2019 will be 4.26% for Series AL shares, being equal to the 5-Year Government of Canada bond yield determined as of January 24, 2014 plus 2.67%, as determined in accordance with the terms of the Series AL shares.<\/p>\n

With respect to any Series AK shares that may be issued on February 24, 2014, holders of the Series AK shares 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, 2014 to but excluding May 24, 2014 will be 2.82%, being equal to the 3-month Government of Canada Treasury Bill yield determined as of January 24, 2014 plus 1.93%, as determined in accordance with the terms of the Series AK shares.<\/p>\n

With respect to any Series AM shares that may be issued on February 24, 2014, holders of the Series AM shares 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, 2014 to but excluding May 24, 2014 will be 3.56%, being equal to the 3-month Government of Canada Treasury Bill yield determined as of January 24, 2014 plus 2.67%, as determined in accordance with the terms of the Series AM shares.<\/p>\n

Beneficial owners of Series AJ shares and Series AL shares who wish to exercise their conversion rights should communicate as soon as possible with their broker or other nominee to obtain instructions for exercising such right on or prior to the deadline for notice of intention to convert, which is 5:00 p.m. (EST) on February 10, 2014.<\/p><\/blockquote>\n

These issues were last mentioned on PrefBlog when the extension became official<\/a>.<\/p>\n

I make no recommendation regarding whether or not to convert. Strong Pair theory<\/a> and its calculator<\/a> imply that the expected average 3-Month T-Bill rate over the next five years will be about 1.90% (compared with the current 0.90%) and I have no strong feelings that this is too high or too low. Investors should make a decision based on the purpose of the issue in their portfolio.<\/p>\n","protected":false},"excerpt":{"rendered":"

Royal Bank of Canada has announced: the applicable dividend rates for its Non-Cumulative 5-Year Rate Reset First Preferred Shares Series AJ (the “Series AJ shares”) and Series AL (the “Series AL shares”) and Non-Cumulative Floating …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-24291","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/24291","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=24291"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/24291\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=24291"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=24291"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=24291"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}