By Ketki Saxena
Investing.com - -The Royal Bank of Canada (TSX:TSX:RY and NYSE:RY) announced on Thursday its plan to redeem all of its issued and outstanding Non-Cumulative First Preferred Shares, Series C-2. The bank will redeem the shares for cash at a redemption price of U.S. $1,000 per share (equivalent to U.S. $25.00 per related depositary share) on November 7, 2023. This redemption also includes all declared and unpaid dividends.
Each NYSE-listed Series C-2 depositary share, which represents a 1/40th interest in a Series C-2 share, will be redeemed concurrently with the redemption of the Series C-2 shares. There are currently 15,385 Series C-2 shares outstanding.
In addition, the final quarterly dividend of U.S. $16.875 per share for the Series C-2 shares (equivalent to U.S. $0.421875 per related depositary share) will be paid in the usual manner on November 7, 2023 to shareholders of record on October 27, 2023.
The redemption of the Series C-2 shares will be financed out of the general corporate funds of Royal Bank of Canada. For tax-related questions concerning the redemption of the Series C-2 shares, shareholders can visit http://www.rbc.com/investorrelations/share-information.html.
The Royal Bank of Canada has not provided further details about its decision to redeem these preferred shares at this time.