TORONTO, Oct. 17,
2024 /CNW/ - Royal Bank of Canada (TSX: RY) (NYSE: RY) today announced
the offering of US$1.0 billion of
non-viability contingent capital (NVCC) Additional Tier 1 (AT1)
Limited Recourse Capital Notes, Series 5 (the "LRCNs"). The
securities offered are registered with the U.S. Securities and
Exchange Commission (the "SEC").
The LRCNs will bear interest at a rate of 6.350 per cent
annually, payable quarterly, for the initial period ending
November 24, 2034. Thereafter, the
interest rate on the LRCNs will reset every five years at a rate
equal to the prevailing 5-year U.S. Treasury Rate plus 2.257 per
cent. The LRCNs will mature on November 24,
2084. The expected closing date of the offering is
November 1, 2024, subject to
customary closing conditions.
RBC Capital Markets, LLC, BofA Securities, Inc., Citigroup
Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley
& Co. LLC, and HSBC Securities (USA) Inc. are the joint book-running
managers for the offering.
Concurrently with the issuance of the LRCNs, the bank will issue
NVCC Non-Cumulative 5-Year Fixed Rate Reset First Preferred Shares,
Series BX ("Preferred Shares Series BX") to be held by
Computershare Trust Company of Canada as trustee for Leo LRCN Limited
Recourse Trust™ (the "Limited Recourse Trust"). In case of
non-payment of interest on or principal of the LRCNs when due, the
recourse of each LRCN holder will be limited to that holder's
proportionate share of the Limited Recourse Trust's assets, which
will consist of Preferred Shares Series BX except in limited
circumstances.
The bank may redeem the LRCNs on November
24, 2034 and on each February
24, May 24, August 24, and November
24 thereafter, only upon the redemption by the bank of the
Preferred Shares Series BX held in the Limited Recourse Trust, in
accordance with the terms of such shares and with the prior written
approval of the Superintendent of Financial Institutions
(Canada), in whole on not less
than 10 nor more than 60 days' prior notice.
Net proceeds from this transaction will be used for general
business purposes.
A registration statement relating to the offering has been filed
with the SEC and is effective. The offering is being made only by
means of a prospectus supplement and a base prospectus. Copies of
the preliminary prospectus supplement and the base prospectus for
the offering may be obtained free of charge by visiting EDGAR on
the SEC's website at www.sec.gov. Alternatively, you may obtain
copies of the final prospectus supplement, when available, and the
base prospectus for this offering by contacting RBC Capital
Markets, LLC, by calling (866)-375-6829, or by e-mailing
TMGUS@rbccm.com.
This press release is for informational purposes only and does
not constitute an offer to sell, or a solicitation of an offer to
buy, nor shall there be any sale of these securities in any state
or jurisdiction in which such an offer, solicitation or sale would
be unlawful prior to registration or qualification under the
securities laws of any such state or jurisdiction.
For further information, please contact:
Investor Contact:
Asim
Imran, Investor Relations, asim.imran@rbc.com,
416-955-7804
Media contact:
Fiona
McLean, Corporate Communications, fiona.mclean@rbc.com,
437-778-3506
SOURCE Royal Bank of Canada