By William Gullotti and Cristal Cody
Buffalo, N.Y., Jan. 12 – Royal Bank of Canada priced $3.75 billion of senior notes in four parts, including a floating-rate tranche, according to multiple 424B2 filings with the Securities and Exchange Commission.
RBC priced $300 million three-year notes at par for the floating-rate tranche. Interest is set at SOFR plus 108 basis points.
The second tranche of three-year notes, totaling $1 billion, priced at 99.97. The first tranche of fixed-rate notes bears interest at 4.875%. The fixed-rate notes priced at Treasuries plus 95 bps after talk in the 115 bps area.
Neither tranche of 2026-maturing notes is callable.
The bank priced the third tranche, $750 million of 4.9% notes maturing in 2028, at 99.947. Pricing came at Treasuries plus 125 bps versus talk in the 145 bps area. The notes may be called at any time, in whole or in part, at the greater of the make-whole redemption price at Treasuries plus 20 bps and par.
The fourth tranche, totaling $1.7 billion, priced at 99.864 and matures in 2033. The notes priced at Treasuries plus 150 bps after talk in the 175 bps area. The last tranche of fixed-rate notes has a 5% interest rate and a comparable call option, except with a make-whole premium at Treasuries plus 25 bps.
RBC Capital Markets, LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, KeyBanc Capital Markets Inc., Santander Investment Securities Inc. and SG Americas Securities, LLC are the joint lead managers and joint bookrunners for the four-part deal.
The financial services company is based in Toronto.
| Issuer: | Royal Bank of Canada
|
| Amount: | $3.75 billion
|
| Issue: | Senior notes
|
| Bookrunners: | RBC Capital Markets, LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, KeyBanc Capital Markets Inc., Santander Investment Securities Inc. and SG Americas Securities, LLC
|
| Trustee: | Bank of New York Mellon
|
| Counsel to issuer: | Sullivan & Cromwell LLP, Norton Rose Fulbright Canada LLP
|
| Counsel to underwriters: | Davis Polk & Wardwell LLP
|
| Pricing date: | Jan. 9
|
| Settlement date: | Jan. 12
|
| Distribution: | SEC registered
|
|
|
| Floating-rate notes
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| Amount: | $300 million
|
| Maturity: | Jan. 12, 2026
|
| Coupon: | SOFR plus 108 bps
|
| Price: | Par
|
| Call: | Non-callable
|
| Cusip: | 78016FZV9
|
| Price talk: | SOFR plus equivalent spread
|
|
|
| 2026 notes
|
| Amount: | $1 billion
|
| Maturity: | Jan. 12, 2026
|
| Coupon: | 4.875%
|
| Price: | 99.97
|
| Spread: | Treasuries plus 95 bps
|
| Call: | Non-callable
|
| Cusip: | 78016FZT4
|
| Price talk: | Treasuries plus 115 bps area
|
|
|
| 2028 notes
|
| Amount: | $750 million
|
| Maturity: | Jan. 12, 2028
|
| Coupon: | 4.9%
|
| Price: | 99.947
|
| Spread: | Treasuries plus 125 bps
|
| Call: | Make-whole call at any time, in whole or in part, discounted at Treasuries plus 20 bps
|
| Cusip: | 78016FZW7
|
| Price talk: | Treasuries plus 145 bps area
|
|
|
| 2033 notes
|
| Amount: | $1.7 billion
|
| Maturity: | Feb. 1, 2033
|
| Coupon: | 5%
|
| Price: | 99.864
|
| Spread: | Treasuries plus 150 bps
|
| Call: | Make-whole call at any time, in whole or in part, discounted at Treasuries plus 25 bps
|
| Cusip: | 78016FZX5
|
| Price talk: | Treasuries plus 175 bps area
|
|
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