By Sarah Lizee
Olympia, Wash., April 13 – Royal Bank of Canada priced $6 million of redeemable leveraged steepener notes due April 13, 2028 linked to the 30-year Constant Maturity Swap rate and the two-year Constant Maturity Swap rate, according to a 424B2 filing with the Securities and Exchange Commission.
The interest rate will be 6% for the first two years. After that, the interest rate will be 8.5 times the 30-year CMS rate over the two-year CMS rate, subject to a minimum of zero and a maximum of 8% per year. Interest will be payable quarterly.
The payout at maturity will be par.
The notes will be callable in whole on April 13, 2019 and annually after that.
RBC Capital Markets, LLC is the agent.
Issuer: | Royal Bank of Canada
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Issue: | Redeemable leveraged steepener notes
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Underlying rates: | 30-year and two-year Constant Maturity Swap rates
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Amount: | $6 million
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Maturity: | April 13, 2028
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Coupon: | 6% for first two years; after that, 8.5 times the 30-year CMS rate over the two-year CMS rate, subject to a 0% floor and a maximum rate of 8%; payable quarterly
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Price: | Variable
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Payout at maturity: | Par
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Call option: | In whole annually beginning April 13, 2019
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Pricing date: | April 11
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Settlement date: | April 13
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Agent: | RBC Capital Markets, LLC
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Fees: | 1.2%
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Cusip: | 78014RAE0
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