By Sarah Lizee
Olympia, Wash., March 20 – Royal Bank of Canada priced $549,000 of redeemable leveraged steepener notes due March 20, 2025 linked to the 10-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 5% for the first year. After that, the interest rate will be eight times the spread of the 10-year CMS rate over the two-year CMS rate, subject to a minimum of zero and a maximum interest rate of 8% per year.
Interest will be payable quarterly.
The payout at maturity will be par.
The notes will be callable in whole on March 20, 2019 and March 20, 2020.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
|
| Issue: | Redeemable leveraged steepener notes
|
| Underlying rates: | 10-year and two-year Constant Maturity Swap rates
|
| Amount: | $549,000
|
| Maturity: | March 20, 2025
|
| Coupon: | 5% initially; beginning March 20, 2019, eight times the spread of the 10-year CMS rate over the two-year CMS rate, subject to a 0% floor and maximum rate of 8%; payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Call option: | In whole on March 20, 2019 and March 20, 2020
|
| Pricing date: | March 16
|
| Settlement date: | March 20
|
| Agent: | RBC Capital Markets, LLC
|
| Fees: | 2.25% to 3%
|
| Cusip: | 78014RAA8
|
|
|
© 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.
