Royal Bank of Canada series BO holders have conversion rights until Feb. 9

By Mary-Katherine Stinson

Lexington, Ky., Jan. 17 – Royal Bank of Canada announced that holders of its currently outstanding non-viability contingent capital non-cumulative first preferred series BO shares may convert their shares during the period starting Jan. 25 until 5 p.m. ET on Feb. 9, according to a press release.

There are currently 14 million series BO shares outstanding.

Holders have the right to convert all or part of their series BO shares, on a one-for-one basis, into NVCC non-cumulative floating rate first preferred shares, series BP, on Feb. 24.

The conversion will occur on Feb. 26, the first business day following the conversion date.

After the tendered shares are totaled, if there would be less than 1 million series BP shares outstanding, the conversion will not occur. Alternatively, if the bank determines that less than 1 million series BO shares would remain outstanding after Feb. 24, then all remaining series BO shares will automatically be converted.

The bank will provide written notice to holders of series BO shares no later than Feb. 17.

The dividend rate for the series BO shares for the five-year period to Feb. 24, 2029, and the dividend rate for the series BP shares for the three-month period to May 24 will be determined and announced on Jan. 25.

RBC stated in the notice that it does not intend to exercise its right to redeem any part of the currently outstanding BO shares.

The financial services company is based in Toronto.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.