E-mail us: service@prospectnews.com Or call: 212 374 2800
Bank Loans - CLOs - Convertibles - Distressed Debt - Emerging Markets
Green Finance - High Yield - Investment Grade - Liability Management
Preferreds - Private Placements - Structured Products
 
Published on 1/25/2011 in the Prospect News Structured Products Daily.

New Issue: RBC prices $2 million redeemable leveraged steepener notes on CMS rates

By Jennifer Chiou

New York, Jan. 25 - Royal Bank of Canada priced $2 million of 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.

RBC Capital Markets, LLC is the agent.

Issuer:Royal Bank of Scotland NV
Issue:Redeemable leveraged steepener notes
Amount:$2 million
Maturity:Jan. 27, 2031
Coupon:9% for one year; thereafter, four times spread of 30-year CMS rate over five-year CMS rate, capped at 9%, floor of 0%; payable quarterly
Price:Par
Payout at maturity:Par
Call option:At par on interest payment dates beginning Jan. 27, 2016
Pricing date:Jan. 24
Settlement date:Jan. 27
Agent:RBS Capital Markets, LLC
Fees:3%
Cusip:78008KYV9

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.