By William Gullotti
Buffalo, N.Y., July 3 – Royal Bank of Canada priced $3.25 million of redeemable fixed to floating rate range accrual notes due June 29, 2033, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly.
For the first two years, the notes will pay a fixed coupon at 8% per year. After that, it will accrue at an annual rate equal to 8% multiplied by the accrual factor, which is the proportion of days during the observation period that the spread of the 30-year U.S. dollar SOFR ICE swap rate over the two-year U.S. dollar SOFR ICE swap rate is at least zero, subject to a maximum interest factor of 8% and a minimum interest factor of 0%.
After one year, the notes will be redeemable quarterly at par.
The payout at maturity will be par.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
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| Issue: | Redeemable fixed to floating rate range accrual notes
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| Amount: | $3.25 million
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| Maturity: | June 29, 2033
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| Coupon: | 8% for first two years; starting June 29, 2025, 8% multiplied by accrual factor, which is proportion of days during observation period that spread of 30-year U.S. dollar SOFR ICE swap rate over two-year U.S. dollar SOFR ICE swap rate is at least zero, subject to a ceiling of 8% and a floor of 0%; payable quarterly
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| Price: | Par
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| Payout at maturity: | Par
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| Call option: | At par quarterly after one year
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| Pricing date: | June 28
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| Settlement date: | June 29
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| Underwriter: | RBC Capital Markets, LLC
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| Fees: | 1.75%
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| Cusip: | 78014RNV8
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