RBC to sell redeemable leveraged steepener notes linked to CMS rates

By E. Janene Geiss

Philadelphia, July 24 - Royal Bank of Canada plans to price redeemable leveraged steepener notes due Aug. 14, 2029 linked to the 10-year and two-year Constant Maturity Swap rates, according to a 424B2 filing with the Securities and Exchange Commission.

The interest rate will be 10.5% for the first year. After that, the rate will be four times the spread of the 10-year CMS rate over the two-year CMS rate, with a floor of zero. Interest will be payable semiannually.

The notes will be callable on Feb. 14 and Aug. 14 of each year.

If the notes are not called, the payout at maturity will be par.

The notes are expected to settle Aug. 14.

RBC Capital Markets Corp. is the underwriter.

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