New Issue: RBC prices $3.75 million redeemable leveraged steepener notes linked to CMS rates

By Toni Weeks

San Luis Obispo, Calif., Feb. 27 - Royal Bank of Canada priced $3.75 million of redeemable leveraged steepener notes due Feb. 28, 2033 linked to the 30-year and two-year Constant Maturity Swap Rates, according to a 424B2 filing with the Securities and Exchange Commission.

The coupon will be 6% for the first year. After that, interest will be equal to 4 times the reference rate, subject to a cap of 6% and a floor of 0%. The reference rate is the spread of the 30-year CMS rate over the two-year CMS rate, minus 50 basis points. Interest is payable semiannually.

The payout at maturity will be par.

The notes will be callable at par in whole but not in part on Aug. 28, 2013, Feb. 28, 2014, Feb. 28, 2019, Feb. 28, 2024 and Feb. 28, 2029.

RBC Capital Markets, LLC is the agent.

Issuer:	Royal Bank of Canada
Issue:	Redeemable leveraged steepener notes
Underlying rates: 30-year and five-year Constant Maturity Swap rates
Amount:	$3.75 million
Maturity:	Feb. 28, 2033
Coupon:	6% for the first year; after that, 4 times the reference rate, which is spread of the 30-year CMS rate over the two-year CMS rate minus 50 bps; cap of 6% and floor of 0%; payable semiannually
Price:	Variable prices from 97 to 97.25
Payout at maturity:	Par
Call option:	At par on Aug. 28, 2013, Feb. 28, 2014, Feb. 28, 2019, Feb. 28, 2024 and Feb. 28, 2029
Pricing date:	Feb. 25
Settlement date:	Feb. 28
Agent:	RBC Capital Markets, LLC
Fees:	Variable
Cusip:	78008SWN2

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