By Sarah Lizee
Olympia, Wash., Dec. 5 – Royal Bank of Canada priced $10 million of redeemable leveraged steepener notes due Nov. 27, 2034 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 3.75% for the first two years. After that, the interest rate will be 10 times the 30-year CMS rate over the five-year CMS rate, subject to a minimum of zero and a maximum of 5% per year. Interest will be payable quarterly.
The payout at maturity will be par.
The notes will be callable in whole starting in November 2022 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 five-year Constant Maturity Swap rates
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| Amount: | $10 million
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| Maturity: | Nov. 27, 2034
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| Coupon: | 3.75% for first two years; after that, 10 times the 30-year CMS rate over the five-year CMS rate, subject to a 0% floor and a maximum rate of 5%; payable quarterly
|
| Price: | Variable
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| Payout at maturity: | Par
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| Call option: | In whole annually beginning November 2022
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| Pricing date: | Nov. 20
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| Settlement date: | Nov. 27
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 0.2%
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| Cusip: | 78014RBT6
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