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RBC plans redeemable leveraged steepener notes linked to CMS rates
By Toni Weeks
San Luis Obispo, Calif., July 10 – Royal Bank of Canada plans to price redeemable leveraged steepener notes due July 31, 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 coupon will be 9% for the first year. After that, interest will be equal to four times the reference rate, subject to a cap of 9% and a floor of 0%. The reference rate is the difference between the 30-year CMS rate and the two-year CMS rate, minus 25 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 July 31, 2015, July 31, 2019, July 31, 2024 and July 31, 2029.
RBC Capital Markets, LLC is the agent.
The notes will settle on July 31.
The Cusip number is 78010UWF0.
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