New Issue: RBC prices $1.01 million 20-year redeemable leveraged steepener notes

By Susanna Moon

Chicago, Aug. 17 - Royal Bank of Canada priced $1.01 million of 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 maximum 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 for five years, then in the 10th year and the 15th year.

RBC Capital Markets, LLC is the agent.

Issuer:	Royal Bank of Canada
Issue:	Redeemable leveraged steepener notes
Amount:	$1,011,000
Maturity:	Aug. 18, 2031
Coupon:	8% for one year; then four times spread of 30-year CMS rate over two-year CMS rate less 50 bps, capped at 8%, floor of zero; payable semiannually
Price:	Variable
Payout at maturity:	Par
Call option:	At par on interest payment dates through Aug. 18, 2016, then on Aug. 18, 2021 and Aug. 18, 2026
Pricing date:	Aug. 15
Settlement date:	Aug. 18
Agent:	RBC Capital Markets, LLC
Fees:	None to 3%
Cusip:	78008TLZ5

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