RY.PR.R – Series BM Prospectus – Royal Bank Preferred Shares

The following is a set of excerpts from the prospectus document for the Series BM preferreds. The excerpts, highlight the most relevant information, an investor should know when analyzing this preferred. A link to the prospectus is provided lower in this page. The original document for RY.PR.R – Series BM Prospectus – Royal Bank Preferred Shares was used for the excerpts and the important information was highlighted for quick access.

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Excerpt: Size and initial yield

February 29, 2016 Royal Bank of Canada $750,000,000 30,000,000 Non-Cumulative 5-Year Rate Reset First Preferred Shares, Series BM (Non-Viability Contingent Capital (NVCC)) Our Non-Cumulative 5-Year Rate Reset First Preferred Shares, Series BM (Non-Viability Contingent Capital (NVCC)) (the “Series BM Preferred Shares”) will be entitled to fixed non-cumulative preferential cash dividends, payable quarterly on the 24th day of February, May, August and November in each year, as and when declared by our board of directors, for the initial period from and including the closing date of this offering to, but excluding, August 24, 2021 (the “Initial Fixed Rate Period”) at a per annum rate of 5.50%, or $1.3750 per share per annum.
The initial dividend, if declared, will be payable on August 24, 2016 and will be $0.6404 per share, based on an anticipated issue date of March 7, 2016.

Excerpt: Reset Date and Yield Terms

For each five-year period after the Initial Fixed Rate Period (each a “Subsequent Fixed Rate Period”), the Series BM Preferred Shares will be entitled to fixed non-cumulative preferential cash dividends, payable quarterly on the 24th day of February, May, August and November in each year, as and when declared by our board of directors, in an amount per share per annum determined by multiplying the Annual Fixed Dividend Rate (as defined herein) applicable to such Subsequent Fixed Rate Period by $25.00.
We will determine the Annual Fixed Dividend Rate for each ensuing Subsequent Fixed Rate Period on the Fixed Rate Calculation Date (as defined herein), which rate will be equal to the sum of the Government of Canada Yield (as defined herein) on the Fixed Rate Calculation Date plus 4.80%.
See “Description of the Series BM Preferred Shares and the Series BN Preferred Shares”.

Excerpt: Conversion Terms

Option to Convert into Non-Cumulative Floating Rate First Preferred Shares, Series BN Holders of the Series BM Preferred Shares will have the option to convert such shares into Non-Cumulative Floating Rate First Preferred Shares, Series BN (Non-Viability Contingent Capital (NVCC)) (the “Series BN Preferred Shares”), subject to certain conditions, on August 24, 2021 and on August 24 every fifth year thereafter.
Series BN Preferred Shares will be entitled to floating rate non-cumulative preferential cash dividends, payable quarterly on the 24th day of February, May, August and November in each year (the initial quarterly dividend period and each subsequent quarterly dividend period is referred to as a “Quarterly Floating Rate Period”), as and when declared by our board of directors, in an amount per share determined by multiplying the applicable Floating Quarterly Dividend Rate (as defined herein) by $25.00.
The Floating Quarterly Dividend Rate will be Optionequal to the sum of the T-Bill Rate (as defined herein) plus 4.80% Option(calculated on the basis of the actual number of days in the applicable Quarterly Floating Rate Period divided by 365) determined on the Floating Rate Calculation Date (as defined herein). See “Description of the Series BM Preferred Shares and the Series BN Preferred Shares”.
Subject to the provisions of the Bank Act (Canada) (the “Bank Act”) and the consent of the Superintendent.