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
|
Issue: | Redeemable fixed to floating rate range accrual notes
|
Amount: | $3.25 million
|
Maturity: | June 29, 2033
|
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
|
Price: | Par
|
Payout at maturity: | Par
|
Call option: | At par quarterly after one year
|
Pricing date: | June 28
|
Settlement date: | June 29
|
Underwriter: | RBC Capital Markets, LLC
|
Fees: | 1.75%
|
Cusip: | 78014RNV8
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.