By Wendy Van Sickle
Columbus, Ohio, March 18 – Royal Bank of Canada priced $11 million of redeemable leveraged steepener notes due March 15, 2041 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 8% for the first year. After that, the interest rate will be 6 times the 30-year CMS rate over the five-year CMS rate, subject to a minimum of zero and a maximum of 8% per year. Interest will be payable quarterly.
The payout at maturity will be par.
The notes will be callable in whole starting in March 15, 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: | $11 million
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| Maturity: | March 15, 2041
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| Coupon: | 8% for first year; after that, 6 times the 30-year CMS rate over the five-year CMS rate, subject to a 0% floor and a maximum rate of 8%; payable quarterly
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| Price: | Variable
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| Payout at maturity: | Par
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| Call option: | In whole annually beginning March 15, 2022
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| Pricing date: | March 11
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| Settlement date: | March 15
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 0.2%
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| Cusip: | 78014RDG2
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