TORONTO, April 17,
2024 /CNW/ - Royal Bank of Canada (TSX: RY) (NYSE: RY) today announced
the offering of US$1.0 billion
of non-viability contingent capital (NVCC) Additional Tier 1 (AT1)
Limited Recourse Capital Notes, Series 4 (the "LRCNs"). The
securities offered are registered with the U.S. Securities and
Exchange Commission (the "SEC").
The LRCNs will bear interest at a rate of 7.500 percent
annually, payable quarterly, for the initial period ending May
2, 2029. Thereafter, the interest rate on the LRCNs will reset
every five years at a rate equal to the prevailing U.S. Treasury
Rate plus 2.887 percent. The LRCNs will mature on May 2, 2084. The expected closing date of the
offering is April 24, 2024, subject to customary closing
conditions.
RBC Capital Markets, LLC, BofA Securities, Inc., Citigroup
Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley
& Co. LLC, MUFG Securities Americas Inc., and UBS Securities
LLC are the joint book-running managers for the offering.
Concurrently with the issuance of the LRCNs, the bank will issue
NVCC Non-Cumulative 5-Year Fixed Rate Reset First Preferred Shares,
Series BV ("Preferred Shares Series BV") to be held by
Computershare Trust Company of Canada as trustee for Leo LRCN Limited
Recourse TrustTM (the "Limited Recourse Trust"). In case
of non-payment of interest on or principal of the LRCNs when due,
the recourse of each LRCN holder will be limited to that holder's
proportionate share of the Limited Recourse Trust's assets, which
will consist of Preferred Shares Series BV except in limited
circumstances.
The bank may redeem the LRCNs on May 2,
2029 and on each February 2,
May 2, August
2, and November 2 thereafter,
only upon the redemption by the bank of the Preferred Shares Series
BV held in the Limited Recourse Trust, in accordance with the terms
of such shares and with the prior written approval of the
Superintendent of Financial Institutions (Canada), in whole on not less than 10 nor more
than 60 days' prior notice.
Net proceeds from this transaction will be used for general
business purposes.
A registration statement relating to the offering has been filed
with the SEC and is effective. The offering is being made only by
means of a prospectus supplement and a base prospectus. Copies of
the preliminary prospectus supplement and the base prospectus for
the offering may be obtained free of charge by visiting EDGAR on
the SEC's website at www.sec.gov. Alternatively, you may obtain
copies of the final prospectus supplement, when available, and the
base prospectus for this offering by contacting RBC Capital
Markets, LLC, by calling (866)-375-6829, or by e-mailing
TMGUS@rbccm.com.
This press release is for informational purposes only and does
not constitute an offer to sell, or a solicitation of an offer to
buy, nor shall there be any sale of these securities in any state
or jurisdiction in which such an offer, solicitation or sale would
be unlawful prior to registration or qualification under the
securities laws of any such state or jurisdiction.
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SOURCE Royal Bank of Canada