Published on 10/4/2021 in the Prospect News Canadian Bonds Daily and Prospect News Investment Grade Daily.
New Issue: Royal Bank of Canada sells $2.75 billion of floating-, fixed-rate notes due 2024, 2026
By Cristal Cody
Chicago, Oct. 4 – Royal Bank of Canada sold $2.75 billion of notes in four parts on Monday, according to a market source and multiple FWP filings with the Securities and Exchange Commission.
The bank sold the bonds in two sets: a floating-rate tranche and a fixed-rate tranche with a three-year tenor and a five-year tenor.
In the first set, $500 million of floating-rate bonds were sold at par with a rate based on SOFR plus 34 basis points.
The fixed-rate part priced as $1 billion of 0.75% notes with a spread of Treasuries plus 30 bps, 15 bps lower than talk in the 45 bps area. The notes priced at 99.867 to yield 0.795%.
In the second pair, the bank sold $350 million of five-year floaters at par with a rate based on SOFR plus 59 bps.
The fixed-rate tranche came as $900 million of 1.4% bonds with a spread of Treasuries plus 48 bps, low to talk in the Treasuries plus 65 bps area. The notes priced at 99.888 to yield 1.423%.
The only tranche that has an optional redemption, the notes can be redeemed early with a Treasuries plus 10 bps premium.
RBC Capital Markets, LLC, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, KeyBanc Capital Markets Inc., SG Americas Securities, LLC and U.S. Bancorp Investments, Inc. were the lead managers and joint bookrunners.
Royal Bank of Canada is a Toronto-based financial services company.
| Issuer: | Royal Bank of Canada
|
| Issue: | Medium-term notes, series I
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| Amount: | $2.75 billion
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| Bookrunners: | RBC Capital Markets, LLC, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, KeyBanc Capital Markets Inc., SG Americas Securities, LLC and U.S. Bancorp Investments, Inc.
|
| Co-managers: | BNY Mellon Capital Markets, LLC, Capital One Securities, Inc., Comerica Securities, Inc., Danske Markets Inc., Desjardins Securities Inc., Fifth Third Securities, Inc., Huntington Securities, Inc., MUFG, National Bank of Canada Financial Inc., Rabo Securities USA, Inc., Regions Securities LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., Academy Securities, Inc., Bancroft Capital, LLC, Drexel Hamilton, LLC, R. Seelaus & Co., LLC, Samuel A. Ramirez & Co., Inc. and Siebert Williams Shank & Co., LLC
|
| Trade date: | Oct. 4
|
| Settlement date: | Oct. 7
|
| Ratings: | Moody’s: A2
|
| S&P: A
|
| Fitch: AA-
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| Distribution: | SEC registered
|
|
|
| Three-year floaters
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| Amount: | $500 million
|
| Maturity: | Oct. 7, 2024
|
| Coupon: | SOFR plus 34 bps, payable quarterly
|
| Price: | Par
|
| Yield: | SOFR plus 34 bps
|
| Cusip: | 78016EZY6
|
|
|
| Three-year fixed
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| Amount: | $1 billion
|
| Maturity: | Oct. 7, 2024
|
| Coupon: | 0.75%
|
| Price: | 99.867
|
| Yield: | 0.795%
|
| Spread: | Treasuries plus 30 bps
|
| Call features: | Non-callable
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| Price talk: | Treasuries plus 45 bps area
|
| Cusip: | 78016EZX8
|
|
|
| Five-year floaters
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| Amount: | $350 million
|
| Maturity: | Nov. 2, 2026
|
| Coupon: | SOFR plus 59 bps
|
| Price: | Par
|
| Yield: | SOFR plus 59 bps
|
| Call features: | Non-callable
|
| Cusip: | 78016EYD3
|
|
|
| Five-year fixed
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| Amount: | $900 million
|
| Maturity: | Nov. 2, 2026
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| Coupon: | 1.4%
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| Price: | 99.888
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| Yield: | 1.423%
|
| Spread: | Treasuries plus 48 bps
|
| Call features: | Make-whole call at Treasuries plus 10 bps
|
| Price talk: | Treasuries plus 65 bps area
|
| Cusip: | 78016EZZ3
|
|
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