Published on 10/5/2023 in the Prospect News Structured Products Daily.
New Issue: RBC prices $10 million floating-to-floating rate notes with 0% floor
By William Gullotti
Buffalo, N.Y., Oct. 5 – Royal Bank of Canada priced $10 million of floating-to-floating rate notes tied to two reference rates due Sept. 29, 2028, according to a 424B2 filing with the Securities and Exchange Commission.
The initial interest rate will be SOFR plus a 105 basis point spread up to, but excluding, March 29, 2028. The reference rate will be the two-Year U.S. Dollar SOFR ICE swap rate plus the same spread from, and including, March 29, 2028 until maturity.
Interest will be paid quarterly and is subject to a floor of 0%.
The payout at maturity will be par plus the final coupon.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
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| Issue: | Floating-to-floating rate notes
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| Reference rates | SOFR, two-Year U.S. Dollar SOFR ICE swap rate
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| Amount: | $10 million
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| Maturity: | Sept. 29, 2028
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| Coupon: | SOFR plus 105 bps up to, but excluding, March 29, 2028; two-Year U.S. Dollar SOFR ICE swap rate plus 105 bps from, and including, March 29, 2028 until maturity; payable quarterly, subject to floor of 0%
|
| Price: | Par
|
| Payout at maturity: | Par plus final coupon
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| Pricing date: | Sept. 27
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| Settlement date: | Sept. 29
|
| Agent: | RBC Capital Markets, LLC
|
| Fees: | None
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| Cusip: | 78014RQR4
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