New Issue: RBC prices $7.47 million redeemable leveraged steepener notes

By Marisa Wong

Madison, Wis., March 27 - Royal Bank of Canada priced $7.47 million of redeemable leveraged steepener notes due March 28, 2034, according to a 424B2 filing with the Securities and Exchange Commission.

The interest rate will be 10% for the first year. After that, the interest rate will be 4 times the reference rate, subject to a cap of 10% per year and a floor of zero. The reference rate is the 30-year Constant Maturity Swap rate minus 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 on Sept. 28, 2014, March 28, 2015, March 28, 2019, March 28, 2024 and March 28, 2029.

RBC Capital Markets, LLC is the agent.

Issuer:	Royal Bank of Canada
Issue:	Redeemable leveraged steepener notes
Underlying rates:	30-year and two-year Constant Maturity Swap rates
Amount:	$7,467,000
Maturity:	March 28, 2034
Coupon:	10% for the first year; after that, 4 times spread of 30-year CMS rate over two-year CMS rate minus 50 basis points; cap of 10% and floor of zero; payable semiannually
Price:	Par
Payout at maturity:	Par
Call option:	At par on Sept. 28, 2014, March 28, 2015, March 28, 2019, March 28, 2024 and March 28, 2029
Pricing date:	March 25
Settlement date:	March 28
Agent:	RBC Capital Markets, LLC
Fees:	4.44%
Cusip:	78010UEA1

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