RBC to price redeemable leveraged steepener notes linked to CMS rates

By Angela McDaniels

Tacoma, Wash., Nov. 4 – Royal Bank of Canada plans to price redeemable leveraged steepener notes due Nov. 28, 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. After that, the interest rate will be five times the reference rate – the spread of the 30-year CMS rate over the two-year CMS rate minus 50 basis points – subject to a minimum of zero and a maximum of 9% per year. Interest will be payable semiannually.

The payout at maturity will be par.

The notes will be callable on May 28, 2015, Nov. 28, 2015, May 28, 2016, Nov. 28, 2016, Nov. 28, 2019, Nov. 28, 2024 and Nov. 28, 2029.

RBC Capital Markets LLC is the agent.

The notes will settle Nov. 28.

The Cusip number is 78010UWR4.

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