New Issue: RBC prices $7.25 million redeemable leveraged steepener notes linked to CMS rates

By Susanna Moon

Chicago, Sept. 26 – Royal Bank of Canada priced $7.25 million of redeemable leveraged steepener notes due Sept. 29, 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 fixed at 9% for the first year. After that, interest will accrue at 4 times the spread of the 30-year CMS rate over the two-year CMS rate minus 25 basis points, up to a maximum rate of 9%. Interest is payable semiannually and cannot be less than zero.

The payout at maturity will be par.

The notes will be callable at par in whole but not in part on March 29, 2015, Sept. 29, 2015, March 29, 2016, Sept. 29, 2016, Sept. 29, 2019, Sept. 29, 2024 and Sept. 29, 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:	$7.25 million
Maturity:	Sept. 29, 2034
Coupon:	9% for one year; after that, 4 times the spread of 30-year CMS rate over two-year CMS rate less 25 bps, capped at 9%; payable semiannually
Price:	Variable
Payout at maturity:	Par
Call option:	At par on March 29, 2015, Sept. 29, 2015, March 29, 2016, Sept. 29, 2016, Sept. 29, 2019, Sept. 29, 2024 and Sept. 29, 2029
Pricing date:	Sept. 24
Settlement date:	Sept. 29
Agent:	RBC Capital Markets, LLC
Fees:	3.46%
Cusip:	78010UWN3

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