{"id":4396,"date":"2008-12-09T01:43:40","date_gmt":"2008-12-09T05:43:40","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=4396"},"modified":"2008-12-09T01:43:40","modified_gmt":"2008-12-09T05:43:40","slug":"ry-raising-significant-equity-capital","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=4396","title":{"rendered":"RY Raising Significant Equity Capital"},"content":{"rendered":"<p>When <a href=\"http:\/\/www.prefblog.com\/?p=4330\">reviewing RY&#8217;s 4Q08 Capitalization<\/a>, I commented:<\/p>\n<blockquote><p>Royal Bank needs to do some delevering &#8211; an equity issue is indicated, since the Equity \/ RWA ratio is below that of its peers.<\/p><\/blockquote>\n<p>Royal Bank <a href=\"http:\/\/www.rbc.com\/newsroom\/2008\/1208-shares.html\">has announced<\/a>:<\/p>\n<blockquote><p>it has entered into an underwriting agreement with a syndicate of underwriters for the sale of 56,750,000 common shares at $35.25 per share for total gross proceeds of $2.0 billion. The offering is expected to close on December 22, 2008.<\/p>\n<p>The bank has also granted to the underwriters an over-allotment option to purchase, on the same terms, up to a further 8,512,500 common shares. The option is exercisable, in whole or in part, up to 30 days after the closing. The maximum gross proceeds raised under the offering will be $2.3 billion if the option is exercised in full.<br \/><b>&#8230;<\/b><br \/>As announced on December 5, 2008, the bank&#8217;s Tier 1 capital ratio was 9% as of October 31, 2008. Earlier this fiscal quarter, we issued $525 million of Series AL and Series AN Preferred Shares. On a pro forma basis, adjusting for the issue of Series AL and Series AN Preferred Shares and this issue of common shares, the bank expects its Tier 1 capital ratio will be approximately 9.9%, or 10.1% if the over-allotment option is exercised in full.<\/p><\/blockquote>\n<p>This is great news!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>When reviewing RY&#8217;s 4Q08 Capitalization, I commented: Royal Bank needs to do some delevering &#8211; an equity issue is indicated, since the Equity \/ RWA ratio is below that of its peers. Royal Bank has &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[25],"tags":[],"class_list":["post-4396","post","type-post","status-publish","format-standard","hentry","category-regulatory-capital"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/4396","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=4396"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/4396\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4396"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4396"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4396"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}