Royal Bank Completes $600M Offering

On June 18, 2004, Royal Bank of Canada completed the public offering of $600 million principal amount of series 2014-1 reset subordinated debentures qualifying as tier 2A capital under the Superintendent of Financial Institutions’ capital adequacy guidelines. This was the first new issue of its kind in Canada under the Superintendent’s recently revised capital adequacy requirements for Tier 2A capital. The interest rate on the debentures resets periodically and the debentures will automatically convert to preferred shares of the bank in limited circumstances.

The offering was led by RBC Dominion Securities Inc. with an underwriting syndicate including TD Securities Inc., BMO Nesbitt Burns Inc., CIBC World Markets Inc., Scotia Capital Inc., Merrill Lynch Canada Inc., National Bank Financial Inc., HSBC Securities (Canada) Inc., Desjardins Securities Inc., and Laurentian Bank Securities Inc.

Royal Bank was represented in house by Antonella Deo, senior counsel, and by Ogilvy Renault, with a team that included Andrew Fleming, Dawn Whittaker (banking and securities) and Adrienne Oliver (tax).

The underwriters were represented by Stikeman Elliott, with a team that included Mihkel Voore and Maurice Swan (securities) and Kevin Kelly (tax).