By Toni Weeks
San Luis Obispo, Calif., May 29 - Royal Bank of Canada priced $5 million of redeemable leveraged steepener notes due May 30, 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 coupon will be 9% for the first year. After that, interest will be equal to four times the reference rate, subject to a cap of 9% and a floor of 0%. The reference rate is the spread of the 30-year CMS rate over the two-year CMS rate minus 25 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 May 30, 2015, May 30, 2019, May 30, 2024 and May 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: | $5 million
|
| Maturity: | May 30, 2034
|
| Coupon: | 9% for 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 25 bps; cap of 9% and floor of 0%; payable semiannually
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Call option: | At par on May 30 of 2015, 2019, 2024 and 2029
|
| Pricing date: | May 27
|
| Settlement date: | May 30
|
| Agent: | RBC Capital Markets, LLC
|
| Fees: | 2.5%
|
| Cusip: | 78010UVT1
|
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