{"id":27583,"date":"2015-01-26T20:09:03","date_gmt":"2015-01-27T01:09:03","guid":{"rendered":"http:\/\/prefblog.com\/?p=27583"},"modified":"2015-01-26T20:09:03","modified_gmt":"2015-01-27T01:09:03","slug":"new-issue-ry-fixedreset-3-60274-nvcc-compliant","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=27583","title":{"rendered":"New Issue: RY FixedReset, 3.60%+274, NVCC-compliant"},"content":{"rendered":"

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

a domestic public offering of Non-Cumulative, 5-Year Rate Reset Preferred Shares Series BD.<\/p>\n

Royal Bank of Canada will issue 12 million Preferred Shares Series BD priced at $25 per share to raise gross proceeds of $300 million. The bank has granted the Underwriters an option, exercisable in whole or in part, to purchase up to an additional 2 million Preferred Shares Series BD at the same offering price.<\/p>\n

The Preferred Shares Series BD will yield 3.60 per cent annually, payable quarterly, as and when declared by the Board of Directors of Royal Bank of Canada, for the initial period ending May 24, 2020. Thereafter, the dividend rate will reset every five years at a rate equal to 2.74 per cent over the 5-year Government of Canada bond yield.<\/p>\n

Subject to regulatory approval, on or after May 24, 2020, the bank may redeem the Preferred Shares Series BD in whole or in part at par. Holders of Preferred Shares Series BD will, subject to certain conditions, have the right to convert all or any part of their shares to Non-Cumulative Floating Rate Preferred Shares Series BE on May 24, 2020 and on May 24 every five years thereafter.<\/p>\n

Holders of the Preferred Shares Series BE will be entitled to receive a non-cumulative quarterly floating dividend, as and when declared by the Board of Directors of Royal Bank of Canada, at a rate equal to the 3-month Government of Canada Treasury Bill yield plus 2.74 per cent. Holders of Preferred Shares Series BE will, subject to certain conditions, have the right to convert all or any part of their shares to Preferred Shares Series BD on May 24, 2025 and on May 24 every five years thereafter.<\/p>\n

The offering will be underwritten by a syndicate led by RBC Capital Markets. The expected closing date is January 30, 2015.<\/p>\n

We routinely undertake funding transactions to maintain strong capital ratios and a cost effective capital structure. Net proceeds from this transaction will be used for general business purposes.<\/p><\/blockquote>\n

They later announced<\/a>:<\/p>\n

that as a result of strong investor demand for its previously announced domestic public offering of Non-Cumulative, 5-Year Rate Reset Preferred Shares Series BD, the size of the offering has been increased to 24 million shares. The gross proceeds of the offering will now be $600 million. The offering will be underwritten by a syndicate led by RBC Capital Markets. The expected closing date is January 30, 2015.<\/p><\/blockquote>\n

Monster issue!<\/p>\n

It doesn’t happen very often, but this issue actually looks cheap to its peers! The new issue looks a whopping $1.47 cheap, while the most expensive issue is RY.PR.I, bid at 25.31 and – according to Implied Volatility theory – is $0.40 rich. RY.PR.I resets at +193 on 2019-02-24 … and has a good chance of being called then because it’s not NVCC-compliant.<\/p>\n

\"impVol_RY_150126\"<\/a>
Click for Big<\/i><\/div>\n","protected":false},"excerpt":{"rendered":"

Royal Bank of Canada has announced: a domestic public offering of Non-Cumulative, 5-Year Rate Reset Preferred Shares Series BD. Royal Bank of Canada will issue 12 million Preferred Shares Series BD priced at $25 per …<\/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-27583","post","type-post","status-publish","format-standard","hentry","category-new-issues"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/27583","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=27583"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/27583\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=27583"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=27583"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=27583"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}