By Angela McDaniels
Tacoma, Wash., Nov. 22 – Royal Bank of Canada priced $10 million of redeemable leveraged steepener notes due Nov. 27, 2034 linked to the 30-year Constant Maturity Swap rate and the five-year Constant Maturity Swap rate, according to a 424B2 filing with the Securities and Exchange Commission.
The interest rate is 3.75% for the first two years. In years three through 15, the interest rate will be 10 times the spread of the 30-year CMS rate over the five-year CMS rate, subject to a minimum of zero and a maximum of 5% per year. Interest is payable annually.
The payout at maturity will be par.
On any annual interest payment date beginning in November 2022, the notes will be automatically called if the amount of interest to be paid on that interest payment date, taken together with all prior interest payments, will exceed a total return of 12% of par.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
|
| Issue: | Redeemable leveraged steepener notes
|
| Underlying rates: | 30-year and five-year Constant Maturity Swap rates
|
| Amount: | $10 million
|
| Maturity: | Nov. 27, 2034
|
| Coupon: | 3.75% for first two years; after that, 10 times spread of 30-year CMS rate over five-year CMS rate, subject to minimum of zero and maximum of 5% per year; payable annually
|
| Price: | Variable prices
|
| Payout at maturity: | Par
|
| Call: | On any annual interest payment date beginning in November 2022, notes will be automatically called if amount of interest to be paid on that interest payment date, taken together with all prior interest payments, will exceed a total return of 12% of par
|
| Pricing date: | Nov. 20
|
| Settlement date: | Nov. 27
|
| Underwriter: | RBC Capital Markets, LLC
|
| Fees: | Underwriter purchased notes at 99.8
|
| Cusip: | 78014RBT6
|
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