Published on 7/28/2010 in the Prospect News Structured Products Daily.
New Issue: RBC prices $1.1 million redeemable CMS countdown range accrual notes
By Angela McDaniels
Tacoma, Wash., July 28 - Royal Bank of Canada priced $1.1 million of redeemable CMS countdown range accrual notes due July 28, 2025 linked to Constant Maturity Swap rates, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly and will accrue at the rate of 5.5% per year on each day that the reference rate is 6% or less. The reference rate is the 15-year CMS rate for years one through five, the 10-year CMS rate in year six, the nine-year CMS rate in year seven, the eight-year CMS rate in year eight, the seven-year CMS rate in year nine, the six-year CMS rate in year 10, the five-year CMS rate in year 11, the four-year CMS rate in year 12, the three-year CMS rate in year 13, the two-year CMS rate in year 14 and the one-year CMS rate in year 15.
The payout at maturity will be par.
The notes are callable on any interest payment date.
RBC Capital Markets Corp. is the underwriter.
| Issuer: | Royal Bank of Canada
|
| Issue: | Redeemable CMS countdown range accrual notes
|
| Amount: | $1.1 million
|
| Maturity: | July 28, 2025
|
| Coupon: | 5.5% per year on each day that the reference rate is 6% or less; payable quarterly
|
| Reference rate: | 15-year CMS rate for years one through five, 10-year CMS rate in year six, nine-year CMS rate in year seven, eight-year CMS rate in year eight, seven-year CMS rate in year nine, six-year CMS rate in year 10, five-year CMS rate in year 11, four-year CMS rate in year 12, three-year CMS rate in year 13, two-year CMS rate in year 14 and one-year CMS rate in year 15
|
| Price: | Variable
|
| Payout at maturity: | Par
|
| Call option: | At par on any interest payment date
|
| Pricing date: | July 26
|
| Settlement date: | July 28
|
| Underwriter: | RBC Capital Markets Corp.
|
| Fees: | 0% to 2%
|
| Cusip: | 78008KDV2
|
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