RBC to price redeemable leveraged steepener notes linked to CMS rates

By Jennifer Chiou

New York, May 15 - Royal Bank of Canada plans to price redeemable leveraged steepener notes due May 30, 2034 linked to the 30-year Constant Maturity Swap rate and the two-year CMS rate, according to a 424B2 filing with the Securities and Exchange Commission.

The interest rate will be 9% for the first year. In years two through 20, the interest rate will be four times the reference rate, subject to a cap of 9% per year and a floor of zero. The reference rate is the 30-year CMS rate minus the two-year CMS rate minus 25 basis points. Interest will be payable semiannually.

The payout at maturity will be par.

The notes will be callable on May 30, 2015, May 30, 2019, May 30, 2024 and May 30, 2029.

The notes (Cusip: 78010UVT1) will settle on May 30.

RBC Capital Markets, LLC is the agent.

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