Royal Bank of Canada announces $200 million preferred share issue

Royal Bank of Canada today announced a domestic public offering of $200 million of Non-Cumulative First Preferred Shares Series AC.

The bank will issue 8 million preferred shares priced at $25 per share and holders will be entitled to receive non-cumulative preferential quarterly dividends in the amount of $0.2875 per share, to yield 4.6% annually.

Subject to regulatory approval, on or after Nov. 24, 2011, the bank may redeem the preferred shares in whole or in part at a declining premium.

The offering will be underwritten by a syndicate led by RBC Capital Markets. The expected closing date is Nov. 1, 2006.

The net proceeds of this transaction will be used for general business purposes and will strengthen the bank’s capital ratios.