{"id":662,"date":"2007-03-05T11:30:52","date_gmt":"2007-03-05T15:30:52","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=662"},"modified":"2007-03-05T11:30:52","modified_gmt":"2007-03-05T15:30:52","slug":"new-issue-royal-bank-445-perpetuals","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=662","title":{"rendered":"New Issue : Royal Bank 4.45% Perpetuals"},"content":{"rendered":"

From my Tier 1 Capital notes<\/a>:<\/p>\n

It is also interesting that Royal has used up about half its available room. Given that their Tier 1 Ratio at year-end significantly lagged the competition, I suspect that there will be more opportunistic issuances in addition to RY.PR.D<\/font><\/a> and RY.PR.E<\/font><\/a>.<\/p><\/blockquote>\n

It’s always gratifying to have one’s predictions justified!<\/p>\n

RBC has announced<\/a>:<\/p>\n

Royal Bank of Canada (RY on TSX and NYSE) today announced a domestic public offering of $200 million of Non-Cumulative First Preferred Shares Series AF.<\/p>\n

The bank will issue 8 million Preferred Shares priced at $25 per share and holders will be entitled to receive non-cumulative preferential quarterly dividends in the amount of $0.278125 per share, to yield 4.45 per cent annually. The bank has granted the Underwriters an option, exercisable in whole or in part, to purchase up to an additional 2 million Preferred Shares at the same offering price.<\/p><\/blockquote>\n

So … 8-million shares @$25.00, a $200-million issue and the potential for $50-million more if the underwriters exercise their options. Pays 4.45% = $1.1125 annually, first dividend August 24 of $0.496815 based on a March 14 closing.<\/p>\n

\n\n\n\n\n\n\n\n\n
RY Pr Ser AF Redemption Schedule<\/td>\n<\/tr>\n
From<\/td>\nTo<\/td>\nPrice<\/td>\n<\/tr>\n
2012-5-24<\/td>\n2013-5-23<\/td>\n$26.00<\/td>\n<\/tr>\n
2013-5-24<\/td>\n2014-5-23<\/td>\n25.75<\/td>\n<\/tr>\n
2014-5-24<\/td>\n2015-5-23<\/td>\n25.50<\/td>\n<\/tr>\n
2015-5-24<\/td>\n2016-5-23<\/td>\n25.25<\/td>\n<\/tr>\n
2016-5-24<\/td>\nINFINITE DATE<\/td>\n25.00<\/td>\n<\/tr>\n<\/table>\n<\/div>\n

The issue is provisionally rated Pfd-1 by DBRS<\/a> and P-1(low) by S&P<\/a>.<\/p>\n

It’s a bought deal, expected to close 2007-3-14.<\/p>\n

More later.<\/p>\n

Later, more<\/strong><\/p>\n

\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Royal Bank 4.45% Perp New Issue & Comparatives<\/td>\n<\/tr>\n
Data<\/td>\nRY.PR.?<\/td>\nRY.PR.A<\/td>\nRY.PR.E<\/td>\n<\/tr>\n
Price due to base-rate<\/td>\n22.72<\/td>\n22.69<\/td>\n23.01<\/td>\n<\/tr>\n
Price due to short-term<\/td>\n-0.36<\/td>\n-0.36<\/td>\n-0.36<\/td>\n<\/tr>\n
Price due to long-term<\/td>\n1.27<\/td>\n1.27<\/td>\n1.28<\/td>\n<\/tr>\n
Price to to Cumulative Dividends<\/td>\n0.00<\/td>\n0.00<\/td>\n0.00<\/td>\n<\/tr>\n
Price due to Liquidity<\/td>\n1.67<\/td>\n1.67<\/td>\n1.68<\/td>\n<\/tr>\n
Price due to error<\/td>\n-0.04<\/td>\n-0.04<\/td>\n-0.04<\/td>\n<\/tr>\n
Curve Price (Taxable Curve)<\/td>\n25.27<\/td>\n25.23<\/td>\n25.57<\/td>\n<\/tr>\n
Dividend Rate<\/td>\n$1.1125<\/td>\n$1.1125<\/td>\n%1.125<\/td>\n<\/tr>\n
Quote 3\/5<\/td>\n25.00
\nIssue<\/td>\n		24.89-98<\/td>\n25.05-16<\/td>\n<\/tr>\n
YTW (after tax)<\/td>\n3.55%<\/td>\n3.57%<\/td>\n3.61%<\/td>\n<\/tr>\n
YTW Date<\/td>\n2016-06-23 \/ Infinite<\/td>\nInfinite<\/td>\n2037-03-05<\/td>\n<\/tr>\n
Credit Rating (DBRS)<\/td>\nPfd-1<\/td>\nPfd-1<\/td>\nPfd-1<\/td>\n<\/tr>\n
YTW (Pre-Tax)<\/td>\n\u00a04.46%<\/td>\n4.49%\u00a0<\/td>\n4.55%\u00a0<\/td>\n<\/tr>\n
YTW Modified Duration (Pre-Tax)<\/td>\n\u00a07.60<\/td>\n16.43<\/td>\n16.30<\/td>\n<\/tr>\n
YTW Pseudo-Convexity (Pre-Tax)<\/td>\n\u00a0-68.1<\/td>\n-37.5<\/td>\n-59.4<\/td>\n<\/tr>\n<\/table>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

From my Tier 1 Capital notes: It is also interesting that Royal has used up about half its available room. Given that their Tier 1 Ratio at year-end significantly lagged the competition, I suspect that …<\/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-662","post","type-post","status-publish","format-standard","hentry","category-new-issues"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/662","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=662"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/662\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=662"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=662"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=662"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}