RBC to price redeemable inverse floating-rate notes linked to Libor

By Angela McDaniels

Tacoma, Wash., Sept. 9 - Royal Bank of Canada plans to price redeemable inverse floating-rate notes due Sept. 28, 2020 linked to Libor, according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable quarterly and cannot be less than zero. The per-year interest rate will be:

• 4% in year one;

• 4% minus Libor in years two and three;

• 4.5% minus Libor in year four;

• 5.5% minus Libor in year five;

• 6% minus Libor in year six;

• 7% minus Libor in years seven and eight; and

• 8% minus Libor in years nine and 10.

The payout at maturity will be par.

The notes will be callable at par on any interest payment date.

The notes (Cusip: 78008KKT9) will price in September. The settlement date is expected to be Sept. 28.

RBC Capital Markets Corp. is the underwriter.

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