RBC plans redeemable leveraged steepener notes linked to CMS rates

By Jennifer Chiou

New York, Jan. 11 - Royal Bank of Canada plans to price redeemable leveraged steepener notes due Jan. 27, 2031 linked to the 30-year and five-year Constant Maturity Swap rates, according to a 424B2 with the Securities and Exchange Commission.

The initial interest rate will be 9%. After the first year, the interest rate will be four times the spread of the 30-year CMS rate over the five-year CMS rate, subject to a floor of zero and a cap of 9% per year. Interest will be payable quarterly.

The payout at maturity will be par.

Beginning Jan. 27, 2016, the notes will be callable in whole on any interest payment date.

The notes (Cusip: 78008KYV9) will settle on Jan. 27.

RBC Capital Markets, LLC is the agent.

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