New Issue: RBC prices $9 million redeemable step-up notes due 2028 with 2.25% initial rate

By Toni Weeks

San Luis Obispo, Calif., Jan. 28 – Royal Bank of Canada priced $9 million of redeemable step-up notes due Jan. 30, 2028, according to a 424B2 filing with the Securities and Exchange Commission.

The interest rate will be 2.25% for the first five years, stepping up to 3.25% in years six through 10, to 4% in year 11, to 5.25% in year 12 and to 6.5% in year 13. Interest will be payable semiannually.

The payout at maturity will be par.

The notes will be callable at par on Jan. 30, 2020, Jan. 30, 2025, Jan. 30, 2026 and Jan. 30, 2027.

RBC Capital Markets, LLC is the underwriter.

Issuer:	Royal Bank of Canada
Issue:	Redeemable step-up notes
Amount:	$9 million
Maturity:	Jan. 30, 2028
Coupon:	2.25% for the first five years, stepping up to 3.25% in years six through 10, to 4% in year 11, to 5.25% in year 12 and to 6.5% in year 13; payable semiannually
Price:	Variable prices
Payout at maturity:	Par
Call option:	At par on Jan. 30, 2020, Jan. 30, 2025, Jan. 30, 2026 and Jan. 30, 2027
Pricing date:	Jan. 27
Settlement date:	Jan. 30
Underwriter:	RBC Capital Markets, LLC
Fees:	1.65% to 2.05%
Cusip:	78012KAC1

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