TORONTO, March 28 /CNW/ - R Split III Corp. (the "Company") is pleased to
announce the exchange ratios for the Company's exchange option (the "Exchange
Option") with respect to its offerings (the "Offerings") of class A capital
shares (the "Capital Shares") and class A preferred shares (the "Preferred
Shares"). Under the Exchange Option, prospective purchasers could exchange
common shares of Royal Bank of Canada for Capital Shares and Preferred Shares
together in Units (consisting of two Capital Shares and one Preferred Share)
or for Capital Shares.
Under the Exchange Option for Units, the number of Preferred Shares and
Capital Shares issuable in exchange for Royal Bank Shares deposited by
prospective purchasers was determined by dividing the Company's acquisition
cost per Royal Bank Share (the "Exchange Price") of $58.43 by $61.60 (being
the sum of the original issue price of two Capital Shares and one Preferred
Share). Accordingly, under the Exchange Option for Units, prospective
purchasers will receive 0.9485 Units for each Royal Bank Share deposited.
Fractional Units will not be issued.
Under the Exchange Option for Capital Shares, prospective purchasers will
receive that number of Capital Shares issuable in exchange for Royal Bank
Shares as determined in the manner described below and $0.01 in cash per
Capital Share. The number of Capital Shares issuable in exchange for each
Royal Bank Share deposited was determined by dividing the Exchange Price by
$16.19 (being the original issues price of a Capital Share). Such exchange
ratio was adjusted to reflect the $0.01 per Capital Share to be received by
prospective purchasers. Accordingly, under the Exchange Option for Capital
Shares, prospective purchasers will receive 3.6069 Capital Shares for each
Royal Bank Share deposited and $0.01 for each Capital Share received.
Fractional Capital Shares will not be issued. The Exchange Option expired at
5:00 p.m. (Toronto time) on March 27, 2007.
R Split III Corp. was established to generate dividend income for holders
of Preferred Shares while providing holders of Capital Shares with a leveraged
opportunity to participate in capital appreciation from a portfolio of common
shares of Royal Bank of Canada. The Company's Offerings of Capital Shares and
Preferred Shares are scheduled to close on April 5, 2007.
For further information:
For further information: Investor Relations, R Split III Corp.,
Telephone (416) 945-7386, E-mail: email@example.com