RY.PR.S – Series BO Prospectus – Royal Bank Preferred Shares

The following is a set of excerpts from the prospectus document for the Series BO 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.S – Series BO 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

October 29, 2018 Royal Bank of Canada $350,000,000 14,000,000 Non-Cumulative 5-Year Rate Reset First Preferred Shares, Series BO (Non-Viability Contingent Capital (NVCC))
Our Non-Cumulative 5-Year Rate Reset First Preferred Shares, Series BO (Non-Viability Contingent Capital (NVCC)) (the “Series BO 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, February 24, 2024 (the “Initial Fixed Rate Period”) at a per annum rate of 4.80%, or $1.2000 per share per annum.
The initial dividend, if declared, will be payable on February 24, 2019 and will be $0.3748 per share, based on an anticipated issue date of November 2, 2018.

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 BO 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 2.38%.
See “Description of the Series BO Preferred Shares and the Series BP Preferred Shares”.

Excerpt: Conversion Terms

Option to Convert into Non-Cumulative Floating Rate First Preferred Shares, Series BP Holders of the Series BO Preferred Shares will have the option to convert such shares into Non-Cumulative Floating Rate First Preferred Shares, Series BP (Non-Viability Contingent Capital (NVCC)) (the “Series BP Preferred Shares”), subject to certain conditions, on February 24, 2024 and on February 24 every fifth year thereafter.
Series BP 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 equal to the sum of the T-Bill Rate (as defined herein) plus 2.38% (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 BO Preferred Shares and the Series BP Preferred Shares”. Subject to the provisions of the Bank Act (Canada) (the “Bank Act”) and the consent of the Superintendent of Financial Institutions (Canada) (the “Superintendent”), on February 24, 2024 and on February 24 every fifth year thereafter.