By Toni Weeks
San Luis Obispo, Calif., Sept. 26 - Royal Bank of Canada priced $4.12 million of redeemable leveraged steepener notes due Sept. 30, 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 7.5% for the first year. After that, interest will be equal to four times the reference rate, subject to a cap of 7.5% and a floor of 0%. The reference rate is the spread of the 30-year CMS rate over the two-year CMS rate. 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 Sept. 30, 2014, Sept. 30, 2019, Sept. 30, 2024 or Sept. 30, 2029.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
|
| Issue: | Redeemable leveraged steepener notes
|
| Underlying rates: | 30-year and two-year Constant Maturity Swap rates
|
| Amount: | $4,115,000
|
| Maturity: | Sept. 30, 2033
|
| Coupon: | 7.5% 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; cap of 7.5% and floor of 0%; payable semiannually
|
| Price: | Variable prices
|
| Payout at maturity: | Par
|
| Call option: | At par on Sept. 30 of 2014, 2019, 2024 or 2029
|
| Pricing date: | Sept. 25
|
| Settlement date: | Sept. 30
|
| Agent: | RBC Capital Markets, LLC
|
| Fees: | None to 3%
|
| Cusip: | 78010UCT2
|
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