RBC to sell 12-year redeemable step-up notes with 2.5% initial rate

By Devika Patel

Knoxville, Tenn., April 19 – Royal Bank of Canada plans to price redeemable step-up notes due April 28, 2028, according to a 424B2 filing with the Securities and Exchange Commission.

The interest rate will be 2.5% for the first five years, stepping up to 3% for years six through 10, to 4% in year 11 and to 5.25% for year 12. Interest will be payable semiannually starting on Oct. 28, 2016.

The payout at maturity will be par.

The notes will be callable in whole but not in part on April 28, 2021, April 28, 2026 and April 28, 2027.

RBC Capital Markets, LLC is the agent.

The notes (Cusip: 78012KMU8) will price on April 26 and settle on April 28.

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