TORONTO, April 12, 2019 /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 AZ (the "Series AZ shares") on May
24, 2019. There are currently 20,000,000 Series AZ shares
outstanding.
Subject to certain conditions set out in the prospectus
supplement dated January 23, 2014
relating to the issuance of the Series AZ shares, the holders of
the Series AZ shares have the right to convert all or part of their
Series AZ shares, on a one-for-one basis, into NVCC Non-Cumulative
Floating Rate First Preferred Shares, Series BA (the "Series BA
shares") on May 24, 2019. On such
date, holders who do not exercise their right to convert their
Series AZ shares into Series BA shares, will continue to hold their
Series AZ shares. The foregoing conversion rights are subject to
the following:
i.
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if Royal Bank of
Canada determines that there would be less than 1,000,000 Series BA
shares outstanding after taking into account all shares tendered
for conversion on May 24, 2019, then holders of Series AZ shares
will not be entitled to convert their shares into Series BA 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 AZ shares after May 24, 2019, then all
remaining Series AZ shares will automatically be converted into
Series BA shares on a one-for-one basis on May 24, 2019.
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In either case, Royal Bank of Canada will give written notice to that effect
to holders of Series AZ shares no later than May 17, 2019.
The dividend rate applicable for the Series AZ shares for the
5-year period from and including May 24,
2019 to but excluding May 24,
2024, and the dividend rate applicable to the Series BA
shares for the 3-month period from and including May 24, 2019 to but excluding August 24, 2019, will be determined and announced
by way of a press release on April 24,
2019.
Beneficial owners of Series AZ 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, 2019 until 5:00 p.m. (EST) on May 9,
2019.
Inquiries should be directed to Shareholder Relations Officer,
Shirley Boudreau, at
416-955-7806.
SOURCE Royal Bank of Canada