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Royal Bank Of: Rbc Completes Acquisition Of City National

The following excerpt is from the company's SEC filing.

Creates a powerful platform for long-term growth in the U.S.

TORONTO, November 2, 2015

Royal Bank of Canada (RY on TSX and NYSE) today announced it has completed the acquisition of City National Corporation (City National).

Today is a major milestone for both of our organizations as we create a leader in private and commercial banking and wealth management in the U.S., our second home market, said Dave McKay, President and CEO, RBC. City National is a great addition to RBC and today we welcome its 3,600 colleagues. Im excited about combining our capabilities to deepen client relatio nships and to serve a broader client base with the aim of being the preferred provider in the U.S. to corporate, institutional, commercial and high-net worth clients and their businesses. Ultimately, our strategy is underpinned by a foundation of helping clients thrive, communities prosper and employees succeed.

Based on the closing price on the New York Stock Exchange of RBCs common shares on October 30, 2015 of US$ 56.83, the total transaction value is US$ 5.0 billion and will be paid with US$ 2.6 billion in cash and 41.6 million RBC common shares. In addition, RBC will issue US$ 275 million of RBC first preferred shares in exchange for all outstanding shares of City National preferred stock. The transaction is expected to reduce the Q1/2016 Common Equity Tier 1 ratio of RBC by approximately 70 basis points. RBC continues to forecast a strong capital position going forward.

As previously announced, RBC will combine its U.S. Wealth Management unit and City National into one line of business to be reported as part of the RBC Wealth Management segment. City National CEO Russell Goldsmith will lead the combined line of business from Los Angeles, where City National is headquartered and where it will continue to operate under the City National name.

Today marks the start of a new and exciting chapter in City Nationals remarkable history, Goldsmith said. RBC is the ideal partner for us and, over time, we plan to grow market share in the communities and among the industries that our company serves. We also intend to create new opportunities by working closely with RBCs outstanding U.S. Wealth Management and U.S. Capital Markets businesses. Through this compelling combination, many of RBCs clients and business-owners, entrepreneurs and their families and companies will gain access to City Nationals excellent...