By Susanna Moon
Chicago, Aug. 10 - Royal Bank of Canada priced $6.55 million of 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.
RBC Capital Markets Corp. is the underwriter.
| Issuer: | Royal Bank of Canada
|
| Issue: | Redeemable leveraged steepener notes
|
| Amount: | $6,545,000
|
| Maturity: | Aug. 12, 2030
|
| Coupon: | 8% for first year; after that, four times the spread of 30-year CMS rate over two-year CMS rate less 25 bps, capped at 8% with floor of zero; payable semiannually
|
| Price: | Variable
|
| Payout at maturity: | Par
|
| Call option: | Annually after one year
|
| Pricing date: | Aug. 9
|
| Settlement date: | Aug. 12
|
| Underwriter: | RBC Capital Markets Corp.
|
| Fees: | 2.25% to 3.25%
|
| Cusip: | 78008KEE9
|
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