/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
TORONTO, Oct. 29, 2021 /CNW/ - Royal Bank of Canada (TSX: RY) (NYSE: RY) today announced a
domestic public offering of Non-Cumulative 5-Year Fixed Rate Reset
First Preferred Shares, Series BT ("Preferred Shares Series
BT").
Royal Bank of Canada will issue
to certain institutional investors 750 thousand Preferred
Shares Series BT priced at $1,000 per
share to raise gross proceeds of $750
million.
The Preferred Shares Series BT will yield 4.20 per cent
annually, payable semi-annually, as and when declared by the Board
of Directors of Royal Bank of Canada, for the initial period ending
February 24, 2027. Thereafter, the
dividend rate will reset every five years at a rate equal
to 2.71 per cent over the 5-year Government of Canada bond yield.
Subject to regulatory approval, the bank may redeem the
Preferred Shares Series BT in whole or in part at par, during the
period from January 24 to and
including February 24, commencing
January 24, 2027 and every five years
thereafter, on not less than 15 days and not more than 60 days'
notice.
RBC Capital Markets is acting as lead agent on the issue. The
expected closing date is November 5, 2021. 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.
The Preferred Shares Series BT will be offered by way of a
prospectus supplement to the bank's short form base shelf
prospectus dated February 27, 2020,
to be filed on or about November 2,
2021 with the securities commissions and other similar
regulatory authorities in each of the provinces and territories of
Canada.
The Preferred Shares Series BT have not been and will not be
registered in the United States
under the United States Securities Act of 1933, as amended (the
"Securities Act"), or the securities laws of any state of
the United States and may not be
offered, sold or delivered, directly or indirectly in the United States or to, or for the account or
benefit of, a "U.S. person" (as defined in Regulation S under the
Securities Act). This press release does not constitute an offer to
sell or a solicitation to buy securities in the United States or in any other jurisdiction
where such offer or solicitation would be unlawful.
SOURCE Royal Bank of Canada