RBC plans redeemable leveraged steepener notes linked to CMS rates

By Susanna Moon

Chicago, July 27 - Royal Bank of Canada plans to price redeemable leveraged steepener notes due Aug. 18, 2031 linked to the 30-year and two-year Constant Maturity Swap rates, according to a 424B2 filing with the Securities and Exchange Commission.

The coupon will be 8% for the first year. After that, it will be four times the spread of the 30-year CMS rate over the two-year CMS rate minus 50 basis points, up to a cap of 8%. Interest will be payable semiannually and cannot be less than zero.

The payout at maturity will be par.

The notes will be callable at par on any interest payment date through Aug. 18, 2016 and then on Aug. 18, 2021 and Aug. 18, 2026.

RBC Capital Markets, LLC is the agent.

The notes will settle on Aug. 18.

The Cusip number is 78008TLZ5.

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