{"id":29216,"date":"2015-05-28T19:15:10","date_gmt":"2015-05-29T00:15:10","guid":{"rendered":"http:\/\/prefblog.com\/?p=29216"},"modified":"2015-05-28T19:15:10","modified_gmt":"2015-05-29T00:15:10","slug":"new-issue-ry-4-90-straight-nvcc-compliant","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=29216","title":{"rendered":"New Issue: RY 4.90% Straight, NVCC-Compliant"},"content":{"rendered":"<p>Royal Bank of Canada <a href=\"http:\/\/www.rbc.com\/newsroom\/news\/2015\/20150528-nvcc-pref-shs.html\">has announced<\/a>:<\/p>\n<blockquote><p>a domestic public offering of Non-Cumulative, Preferred Shares Series BH.<\/p>\n<p>Royal Bank of Canada will issue 6 million Preferred Shares Series BH priced at $25 per share to raise gross proceeds of $150 million.<\/p>\n<p>The Preferred Shares Series BH will yield 4.90 per cent annually, payable quarterly, as and when declared by the Board of Directors of Royal Bank of Canada.<\/p>\n<p>Subject to regulatory approval, on or after November 24, 2020, the bank may redeem the Preferred Shares Series BH in whole or in part at a declining premium.<\/p>\n<p>The offering will be underwritten by a syndicate led by RBC Capital Markets. The expected closing date is June 5, 2015.<\/p>\n<p>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<p>Well! It&#8217;s been a long time since we last saw a Straight Perpetual being issued &#8230; not since GWO.PR.S, paying 5.25%, <a href=\"http:\/\/prefblog.com\/?p=25230\">announced 2014-5-13<\/a> and <a href=\"http:\/\/prefblog.com\/?p=25312\">listed 2014-5-22<\/a>.<\/p>\n<p>I&#8217;m not sure what we can make of this &#8230; does this mean that RY&#8217;s treasury department thinks FixedResets are cheap? Their recently issued RY.PR.M, FixedReset, 3.60%+262, was <a href=\"http:\/\/prefblog.com\/?p=28260\">hammered on the opening<\/a> and they might be unwilling to risk a reprise. Or they may simply want to test the waters of the Straight Perpetual market with a small new issue. Or they might feel that they&#8217;ve got quite enough capital tied to five-year Canadas, thank you very much, and be willing to pay up a little for diversification of funding.<\/p>\n<p>One way or another, it&#8217;s good to see. I&#8217;ve been saying for the past six years that I think Straights will always be the &#8216;little black dress&#8217; of the preferred share market and it&#8217;s nice to see a bit of support for that idea.<\/p>\n<p><b>Update, 2015-5-29<\/b>: It&#8217;s also noteworthy that this issue has a great big fat first dividend, payable in November, that will go ex in late October. There might be some opportunities for dividend capture come October!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Royal Bank of Canada has announced: a domestic public offering of Non-Cumulative, Preferred Shares Series BH. Royal Bank of Canada will issue 6 million Preferred Shares Series BH priced at $25 per share to raise &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-29216","post","type-post","status-publish","format-standard","hentry","category-new-issues"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/29216","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=29216"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/29216\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=29216"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=29216"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=29216"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}