RBC to price redeemable leveraged steepener notes linked to CMS rates

By Angela McDaniels

Tacoma, Wash., June 9 – Royal Bank of Canada plans to price redeemable leveraged steepener notes due June 29, 2035 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 7.5% in years one and two. After that, the interest rate will be four times the reference rate – the 30-year CMS rate over the two-year CMS rate minus 25 basis points – subject to a minimum of zero and a maximum of 7.5% per year. Interest will be payable semiannually.

The payout at maturity will be par.

The notes will be callable on June 29, 2016, June 29, 2020, June 29, 2025 and June 29, 2030.

RBC Capital Markets LLC is the agent.

The notes will settle June 29.

The Cusip number is 780102KDH7.

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