Chicago, March 28 – Royal Bank of Canada priced $1 million of redeemable leveraged steepener notes due April 30, 2041 linked to the 30-year Constant Maturity Swap rate and the five-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 three years. After that, the interest rate will be six times the 30-year CMS rate over the five-year CMS rate, subject to a minimum of zero and a maximum of 7% per year. Interest will be payable quarterly.
The payout at maturity will be par.
The notes will be callable in whole starting in April 30, 2022 and quarterly 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 five-year Constant Maturity Swap rates
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| Amount: | $1 million
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| Maturity: | April 30, 2041
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| Coupon: | 5% for first three years; after that, six times the 30-year CMS rate over the five-year CMS rate, subject to a 0% floor and a maximum rate of 7%; payable quarterly
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| Price: | Variable
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| Payout at maturity: | Par
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| Call option: | In whole quarterly beginning April 30, 2022
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| Pricing date: | April 28, 2021
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| Settlement date: | April 30, 2021
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 1.5%
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| Cusip: | 78014RDL1
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