R Split III Corp. announces completion of $140 million initial public offering



    TORONTO, April 5 /CNW/ - R Split III Corp. (the "Company") announced
today that it has completed its initial public offering, raising gross
proceeds of $140 million through the issuance of 4,546,000 Capital Shares and
2,273,000 Preferred Shares at prices of $16.19 per Capital Share and $29.22
per Preferred Share. The Capital Shares and Preferred Shares were offered to
the public by a syndicate of agents led by Scotia Capital Inc and RBC Dominion
Securities Inc.
    The Company will hold 2,273,000 common shares (the "Royal Bank Shares")
of Royal Bank of Canada in order to generate quarterly fixed cumulative
preferential distributions for the Preferred Shareholders representing a yield
of 4.50% per annum on the $29.22 offering price. The Capital Shareholders are
provided with a leveraged investment, the value of which is linked to changes
in the market price of the Royal Bank Shares. Capital Shareholders will also
benefit from any increase in the dividends paid on the Royal Bank Shares and
will be entitled to receive dividends as and when declared by the Board of
Directors of the Company. Based on the current Royal Bank Share dividends and
estimated expenses of the Company, the Company expects to pay quarterly
dividends representing a yield of approximately 0.84% on the $16.19 offering
price.
    Capital Shares and Preferred Shares of R Split III Corp. are listed for
trading on The Toronto Stock Exchange under the symbols RBS and RBS.PR.A
respectively.

    %SEDAR: 00024907E




For further information:

For further information: Investor Relations, R Split III Corp., (416)
945-7386, E-mail: mc_rsplit@scotiacapital.com, Web site:
www.scotiamanagedcompanies.com

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R Split III Corp.

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