TORONTO, April 9, 2020 /CNW/ - Royal Bank of Canada (RY on TSX and NYSE) today announced
that it does not intend to exercise its right to redeem all or any
part of the currently outstanding Non-Viability Contingent Capital
(NVCC) Non-Cumulative 5-Year Rate Reset First Preferred Shares,
Series BD (the "Series BD shares") on May
24, 2020. There are currently 24,000,000 Series BD shares
outstanding.
Subject to certain conditions set out in the prospectus
supplement dated January 27, 2015
relating to the issuance of the Series BD shares, the holders of
the Series BD shares have the right to convert all or part of their
Series BD shares, on a one-for-one basis, into NVCC Non-Cumulative
Floating Rate First Preferred Shares Series BE (the "Series BE
shares") on May 24, 2020. On such
date, holders who do not exercise their right to convert their
Series BD shares into Series BE shares will continue to hold their
Series BD shares. The conversion will occur on May 25 being the first business day following the
conversion date of May 24 as
identified in the prospectus, which falls on a Sunday. The
foregoing conversion rights are subject to the following:
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i.
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if Royal Bank of
Canada determines that there would be less than 1,000,000 Series BE
shares outstanding after taking into account all shares tendered
for conversion on May 24, 2020, then holders of Series BD shares
will not be entitled to convert their shares into Series BE shares,
and
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ii.
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alternatively, if
Royal Bank of Canada determines that there would remain outstanding
less than 1,000,000 Series BD shares after May 24, 2020, then all
remaining Series BD shares will automatically be converted into
Series BE shares on a one-for-one basis on May 24, 2020.
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In either case, Royal Bank of Canada will give written notice to that effect
to holders of Series BD shares no later than May 17, 2020.
The dividend rate applicable for the Series BD shares for the
5-year period from and including May 24,
2020 to, but excluding, May 24,
2025, and the dividend rate applicable to the Series BE
shares for the 3-month period from and including May 24, 2020 to, but excluding, August 24, 2020, will be determined and announced
by way of a press release on April 24,
2020.
Beneficial owners of Series BD shares who wish to exercise their
conversion rights should instruct their broker or other nominee to
exercise such rights during the conversion period, which runs from
April 24, 2020 until 5:00 p.m. (EST) on May 11,
2020.
Inquiries should be directed to Shareholder Relations Officer,
Shirley Boudreau, at
416-955-7806.
SOURCE Royal Bank of Canada