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Royal Bank of Canada announces NVCC AT1 Limited Recourse Capital Notes issue

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Royal Bank of Canada (RY) announces the issuance of US$1.0 billion NVCC AT1 Recourse Capital Notes, Series 4, with an interest rate of 7.500 percent annually. The offering is registered with the SEC and will mature on May 2, 2084. RBC Capital Markets, , BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities , Morgan Stanley & Co. , MUFG Securities Americas Inc., and UBS Securities are the joint book-running managers. Net proceeds will be used for general business purposes.
La Royal Bank of Canada (RY) annuncia l'emissione di 1,0 miliardi di dollari USA di note di capitale ricorsivo NVCC AT1, Serie 4, con un tasso di interesse annuale del 7,500 percento. L'offerta è registrata presso la SEC e scadrà il 2 maggio 2084. I gestori del libro mastro congiunto sono RBC Capital Markets, BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities, Morgan Stanley & Co., MUFG Securities Americas Inc. e UBS Securities. I proventi netti saranno utilizzati per scopi aziendali generali.
El Royal Bank of Canada (RY) anuncia la emisión de US$1.0 mil millones en Notas de Capital Recursivo NVCC AT1, Serie 4, con una tasa de interés anual del 7.500 por ciento. La oferta está registrada ante la SEC y vencerá el 2 de mayo de 2084. Los gestores líderes de la emisión son RBC Capital Markets, BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities, Morgan Stanley & Co., MUFG Securities Americas Inc. y UBS Securities. Los ingresos netos se utilizarán para fines comerciales generales.
캐나다 왕립 은행(Royal Bank of Canada, RY)은 미화 10억 달러 규모의 NVCC AT1 자원 자본 노트, 시리즈 4를 발행한다고 발표했습니다. 이 노트는 연 7.500퍼센트의 이자율을 가지며, SEC에 등록되어 2084년 5월 2일에 만기가 됩니다. 공동 주관사는 RBC 캐피탈 마켓, BofA 증권, 시티그룹 글로벌 마켓, J.P. 모건 증권, 모건 스탠리 & Co., MUFG 증권 아메리카스, UBS 증권입니다. 순수익은 일반 비즈니스 목적으로 사용될 예정입니다.
La Banque Royale du Canada (RY) annonce l'émission de 1,0 milliard de dollars US de notes de capital récursif NVCC AT1, série 4, avec un taux d'intérêt annuel de 7,500 pour cent. L'offre est enregistrée auprès de la SEC et arrivera à échéance le 2 mai 2084. Les gestionnaires de livres conjoints sont RBC Marchés des Capitaux, BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities, Morgan Stanley & Co., MUFG Securities Americas Inc., et UBS Securities. Les produits nets seront utilisés à des fins commerciales générales.
Die Royal Bank of Canada (RY) kündigt die Ausgabe von US$1,0 Milliarden NVCC AT1 nachrangigen Kapitalnoten, Serie 4, mit einem jährlichen Zinssatz von 7,500 Prozent an. Das Angebot ist bei der SEC registriert und wird am 2. Mai 2084 fällig. Als gemeinsame Buchführungsmanager fungieren RBC Capital Markets, BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities, Morgan Stanley & Co., MUFG Securities Americas Inc. und UBS Securities. Die Nettoerlöse werden für allgemeine Geschäftszwecke verwendet.
Positive
  • Royal Bank of Canada (RY) issues US$1.0 billion NVCC AT1 Recourse Capital Notes, Series 4.
  • Interest rate set at 7.500 percent annually, payable quarterly until May 2, 2029.
  • LRCNs will reset every five years based on the U.S. Treasury Rate plus 2.887 percent.
  • Maturity date for the LRCNs is May 2, 2084.
  • RBC Capital Markets, , BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities , Morgan Stanley & Co. , MUFG Securities Americas Inc., and UBS Securities are joint book-running managers.
  • Net proceeds from the offering will be used for general business purposes.
Negative
  • None.

TORONTO, April 17, 2024 /PRNewswire/ - 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 4 (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 7.500 percent annually, payable quarterly, for the initial period ending May 2, 2029. Thereafter, the interest rate on the LRCNs will reset every five years at a rate equal to the prevailing U.S. Treasury Rate plus 2.887 percent. The LRCNs will mature on May 2, 2084. The expected closing date of the offering is April 24, 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, MUFG Securities Americas Inc., and UBS Securities LLC 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 BV ("Preferred Shares Series BV") to be held by Computershare Trust Company of Canada as trustee for Leo LRCN Limited Recourse TrustTM (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 BV except in limited circumstances.

The bank may redeem the LRCNs on May 2, 2029 and on each February 2, May 2, August 2, and November 2 thereafter, only upon the redemption by the bank of the Preferred Shares Series BV 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.

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SOURCE Royal Bank of Canada

FAQ

What is the interest rate for the NVCC AT1 Recourse Capital Notes issued by Royal Bank of Canada?

The interest rate for the NVCC AT1 Recourse Capital Notes issued by Royal Bank of Canada is 7.500 percent annually, payable quarterly until May 2, 2029.

When will the LRCNs issued by Royal Bank of Canada mature?

The LRCNs issued by Royal Bank of Canada will mature on May 2, 2084.

Who are the joint book-running managers for the NVCC AT1 Recourse Capital Notes offering by Royal Bank of Canada?

The joint book-running managers for the NVCC AT1 Recourse Capital Notes offering by Royal Bank of Canada are RBC Capital Markets, , BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities , Morgan Stanley & Co. , MUFG Securities Americas Inc., and UBS Securities

What will the net proceeds from the NVCC AT1 Recourse Capital Notes offering be used for?

The net proceeds from the NVCC AT1 Recourse Capital Notes offering will be used for general business purposes.

Royal Bank of Canada

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