RBC to price 13-year redeemable step-up notes with 2.5% initial rate

By Devika Patel

Knoxville, Tenn., July 3 – Royal Bank of Canada plans to price redeemable step-up notes due July 26, 2030, according to a FWP filing with the Securities and Exchange Commission.

The interest rate will be 2.5% for the first five years, stepping up to 3% for years six through 10, to 3.5% for year 11, to 4% for year 12 and to 5% for the final year. Interest will be payable semiannually.

The payout at maturity will be par.

The notes will be callable in whole but not in part on July 26, 2022, July 26, 2027, July 26, 2028 and July 26, 2029.

RBC Capital Markets, LLC is the underwriter.

The notes (Cusip: 78012KM38) will price July 21 and settle July 26.

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