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RBC to price redeemable leveraged steepener notes linked to CMS rates
By Angela McDaniels
Tacoma, Wash., March 7 - Royal Bank of Canada plans to price redeemable leveraged steepener notes due March 28, 2034 linked to the 30-year Constant Maturity Swap rate and the two-year CMS rate, according to a 424B2 filing with the Securities and Exchange Commission.
The interest rate will be 10% for the first year. In years two through 20, the interest rate will be four times the reference rate, subject to a cap of 10% per year and a floor of zero. The reference rate is the 30-year CMS rate minus the two-year CMS rate minus 50 basis points. Interest will be payable semiannually.
The payout at maturity will be par.
The notes will be callable on Sept. 28, 2014, March 28, 2015, March 28, 2019, March 28, 2024 and March 28, 2029.
RBC Capital Markets, LLC is the agent.
The notes will settle March 28.
The Cusip number is 78010UEA1.
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