RY.PR.W – Series W Prospectus – Royal Bank Preferred Shares

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

January 21, 2005 Royal Bank of Canada $300,000,000 12,000,000 Non-Cumulative First Preferred Shares Series W
The holders of Non-Cumulative First Preferred Shares Series W (the “Preferred Shares Series W”) of Royal Bank of Canada (the “Bank”) will be entitled to receive 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 the board of directors of the Bank, at a quarterly rate of $0.30625 per Preferred Share Series W.
The initial dividend, if declared, will be payable on May 24, 2005 and will be $0.37925 per Preferred Share Series W, based on an anticipated issue date of January 31, 2005. See “Details of the Offering”. Subject to the provisions of the Bank Act (Canada) (the “Bank Act”) and the consent of the Superintendent of Financial Institutions (the “Superintendent”), on and after February 24, 2010, the Bank may redeem the Preferred Shares Series W in whole or in part by the payment in cash of a sum equal to $25.00 per Preferred Share Series W plus, if redeemed before February 24, 2014, a premium, together with declared and unpaid dividends to the date fixed for redemption.
See “Details of the Offering”. The Bank may also, on and after February 24, 2010, subject to (i) the consent of the Superintendent, (ii) the provisions of the Bank Act, and (iii) the approval of the Toronto Stock Exchange (the “TSX”), convert the Preferred Shares Series W in whole or in part into that whole number of fully-paid and freely tradeable common shares of the Bank (the “Common Shares”) determined by dividing the then applicable redemption price, together with declared and unpaid dividends to the date fixed for conversion, by the greater of $2.50 and 95% of the weighted average trading price of the Common Shares at such time. See “Details of the Offering”.
The TSX has conditionally approved the listing of the Preferred Shares Series W on the TSX. Listing will be subject to the Bank fulfilling all of the requirements of the TSX on or before April 19, 2005.
Price: $25.00 per Preferred Share Series W to yield 4.90%

RY.PR.W – Series W Prospectus – Royal Bank Preferred Shares Original Document

I have presented the most important information regarding the Series W preferreds. If you need to go through the original and complete document for RY.PR.W – Series W Prospectus – Royal Bank Preferred Shares is available here.