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. 12, 2030 based on the 30-year Constant Maturity Swap rate and two-year CMS rate, according to a 424B2 filing with the Securities and Exchange Commission.

The coupon is 8% for the first year. After that, the rate will be four times the spread between the 30-year CMS rate and the two-year CMS rate minus 25 basis points, up to a maximum rate of 8%. Interest is payable semiannually and cannot be less than zero.

The notes are callable annually beginning Aug. 12, 2011.

The payout at maturity will be par.

The notes (Cusip 78008KEE9) will settle on Aug. 12.

RBC Capital Markets Corp. is the underwriter.

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