Published on 4/25/2023 in the Prospect News Canadian Bonds Daily and Prospect News Investment Grade Daily.
New Issue: Royal Bank of Canada prices $2.5 billion of notes due 2025, 2033
By William Gullotti and Cristal Cody
Buffalo, N.Y., April 25 – Royal Bank of Canada priced $2.5 billion of senior notes in two parts (A1/A/AA-) on Monday, according to two FWP filings with the Securities and Exchange Commission and additional information provided by a market source.
The bank priced $1.6 billion of 4.95% two-year notes at 99.935 to yield 4.985%, or at Treasuries plus 85 basis points. Talk was higher, in the Treasuries plus 110 bps area.
The second tranche priced as $900 million of 5% notes due 2033 at 99.789 to yield 5.027%, or Treasuries plus 152 bps. Talk was in the 170 bps area.
The 2025 notes are non-callable, and the 2033 notes can be redeemed with a Treasuries plus 25 bps make-whole redemption.
The joint lead managers and joint bookrunners are RBC Capital Markets, LLC, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, ANZ Securities, Inc., Truist Securities, Inc. and Lloyds Securities Inc.
The financial services company is based in Toronto.
| Issuer: | Royal Bank of Canada
|
| Amount: | $2.5 billion
|
| Issue: | Senior notes
|
| Bookrunners: | RBC Capital Markets, LLC, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, ANZ Securities, Inc., Truist Securities, Inc. and Lloyds Securities Inc.
|
| Co-managers: | BNY Mellon Capital Markets, LLC, Capital One Securities, Inc., Comerica Securities, Inc., Commonwealth Bank of Australia, Desjardins Securities Inc., Fifth Third Securities, Inc., Huntington Securities, Inc., KeyBanc Capital Markets Inc., M&T Securities, Inc., MUFG Securities Americas Inc., nabSecurities, LLC, National Bank of Canada Financial Inc., Rabo Securities USA, Inc., Regions Securities LLC, Scotia Capital (USA) Inc., U.S. Bancorp Investments, Inc., Westpac Banking Corp., Bancroft Capital, LLC, Independence Point Securities LLC, MFR Securities, Inc. and Siebert Williams Shank & Co., LLC
|
| Trade date: | April 24
|
| Settlement date: | April 27
|
| Ratings: | Moody’s: A1
|
| S&P: A
|
| Fitch: AA-
|
| Distribution: | SEC registered
|
|
|
| 2025 notes
|
| Amount: | $1.6 billion
|
| Maturity: | April 25, 2025
|
| Coupon: | 4.95%
|
| Price: | 99.935
|
| Yield: | 4.985%
|
| Spread: | Treasuries plus 85 bps
|
| Call features: | Non-callable
|
| Price talk: | Treasuries plus 110 bps area
|
| Cusip: | 78016FZY3
|
|
|
| 2033 notes
|
| Amount: | $900 million
|
| Maturity: | May 2, 2033
|
| Coupon: | 5%
|
| Price: | 99.789
|
| Yield: | 5.027%
|
| Spread: | Treasuries plus 152 bps
|
| Call features: | Make-whole call at Treasuries plus 25 bps
|
| Price talk: | Treasuries plus 170 bps area
|
| Cusip: | 78016HZQ6
|
|
|
© 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.
