RBC to price redeemable leveraged steepener notes linked to CMS rates

By Toni Weeks

San Luis Obispo, Calif., Dec. 1 – Royal Bank of Canada plans to price redeemable leveraged steepener notes due Dec. 23, 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 4% for the first year. After that, the interest rate will be three times the reference rate – the spread of the 30-year CMS rate over the two-year CMS rate minus 15 basis points – subject to a minimum of zero and a maximum of 6% per year. Interest will be payable semiannually.

The payout at maturity will be par.

The notes will be callable on Dec. 23, 2015 and Dec. 23, 2019.

RBC Capital Markets LLC is the agent.

The notes will settle Dec. 23.

The Cusip number is 78010UWU7.

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