RBC gives dividend rates for several series of preferred shares

By Jennifer Chiou

New York, Jan. 24 - Royal Bank of Canada announced the applicable dividend rates for its non-cumulative five-year rate-reset series AJ and series AL first preferred shares and non-cumulative floating-rate series AK and series AM first preferred shares.

Holders of the series AJ preferreds and series AL preferreds who wish to exercise their conversion rights have until 5 p.m. ET on Feb. 10 to give notice of their intention to convert their preferreds into series AK preferreds and series AM preferreds, respectively.

According to a news release, holders of any outstanding series AJ and series AL preferreds will be entitled to receive quarterly fixed non-cumulative preferential cash dividends when declared by the board of directors after Feb. 24, the release said.

The dividend rate from and including Feb. 24 to Feb. 24, 2019 will be 3.52% for the series AJ preferreds, which is equal to the five-year Government of Canada bond yield as of Jan. 24 plus 193 basis points.

For the series AL preferreds, the rate will be 4.26% for the same five-year period, which was set using the five-year Government of Canada bond yield as of Jan. 24 plus 267 bps.

For any series AK shares that may be issued on Feb. 24, holders of those securities will be entitled to quarterly floating-rate non-cumulative preferential cash dividends when declared by the board.

The release stated that the dividend rate for the floating-rate period from and including Feb. 24 to but excluding May 24 will be 2.82%, which is equal to the three-month Government of Canada Treasury bill yield as of Jan. 24 plus 193 bps.

For any series AM shares that may be issued on Feb. 24, holders of those securities will be entitled to quarterly floating-rate non-cumulative preferential cash dividends when declared by the board.

The Toronto-based bank said that the dividend rate for the floating-rate period from and including Feb. 24 to but excluding May 24 will be 3.56%, which is equal to the three-month Government of Canada Treasury bill yield as of Jan. 24 plus 267 bps.

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