By Toni Weeks
San Luis Obispo, Calif., March 26 - Royal Bank of Canada priced $10 million of redeemable leveraged steepener notes due March 27, 2033 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 6% for the first year. After that, interest will be equal to four times the reference rate, subject to a cap of 6% and a floor of 0%. The reference rate is the spread of the 30-year CMS rate over the two-year CMS rate, minus 50 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 Sept. 27 and March 27 of the years 2014, 2019, 2024 and 2029.
RBC Capital Markets, LLC is the agent.
Issuer: | Royal Bank of Canada
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Issue: | Redeemable leveraged steepener notes
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Underlying rates: 30-year and five-year Constant Maturity Swap rates
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Amount: | $10 million
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Maturity: | March 27, 2033
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Coupon: | 6% for the 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 50 bps; cap of 6% and floor of 0%; payable semiannually
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Price: | Par
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Payout at maturity: | Par
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Call option: | At par on Sept. 27 and March 27 of the years 2014, 2019, 2024 and 2029
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Pricing date: | March 22
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Settlement date: | March 27
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Agent: | RBC Capital Markets, LLC
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Fees: | 3%
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Cusip: | 78008SE93
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