Royal Bank of Scotland Group Plc said Aug. 7 that it will redeem four series of noncumulative U.S. dollar preference shares and their corresponding series of American depositary shares in September and December.
The series F, H and L shares — with respective amounts outstanding of about $156.4 million, $242.2 million and $750.7 million — will be redeemed Sept. 4 for $25 per preference share and American depositary share, plus accrued dividends.
The Series 1 shares, with amounts outstanding of about $64.8 million, will be redeemed Dec. 3 for $1,000 per preference share and $1 per American depositary share, plus accrued dividends.
RBS will pay for the preference shares out of its distributable reserves.
The British lender noted that the series F, H and L American depositary shares will cease to trade on the New York Stock Exchange from the redemption date.
Meanwhile, an application will be made with the U.K. Financial Conduct Authority, in its capacity as the U.K. Listing Authority, to cancel the listings of the series 1 shares on the latter's official list. An application will also be made with the London Stock Exchange for the cancellation of the trading in the series 1 shares in its main market for listed securities.
RBS expects to redeem approximately £930 million of the preference shares, reducing its retained earnings and distributable items by about £930 million.