TORONTO, Jan. 22, 2016 /CNW/ - Royal Bank of Canada (RY on TSX and NYSE) today announced that Business Bancorp Capital Trust I (the "Trust"), a Delaware trust and an indirect, unconsolidated subsidiary of Royal Bank of Canada acquired as a result of the merger with City National Corporation, will redeem all of its currently issued and outstanding trust preferred securities and common securities (together, the "Trust Securities") on February 23, 2016 (the "redemption date"). The redemption price for the Trust Securities will be the liquidation amount of US$1,000 per Trust Security, for a total aggregate liquidation amount of US$5,155,000, plus accrued and unpaid interest thereon to the redemption date. The terms and conditions of the redemption are set forth in the notice of redemption to the holders of the Trust Securities.
In connection with the redemption of the Trust Securities, RBC USA Holdco Corporation, a Delaware corporation and a direct, wholly owned subsidiary of Royal Bank of Canada, will redeem all of its issued and outstanding Floating Rate Junior Subordinated Debt Securities due 2034, in an aggregate principal amount of US$5,155,000 (the "Debt Securities"), all of which are held by the Trust, at a corresponding redemption price of US$1,000 per Debt Security plus accrued and unpaid interest thereon to the redemption date. The proceeds to the Trust from the redemption of the Debt Securities will be applied to redeem all of the Trust Securities.
SOURCE Royal Bank of Canada