R Split III Corp. is pleased to announce the exchange ratios for the Company's exchange option with respect to its offerings of class A capital shares and class A 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 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. -- www.cnxmarketlink.com
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