RBC plans redeemable leveraged steepener notes linked to CMS rates

By Marisa Wong

Madison, Wis., June 4 - Royal Bank of Canada plans to price redeemable leveraged steepener notes due June 30, 2029 linked to the 30-year Constant Maturity Swap rate and the five-year CMS rate, according to an FWP filing with the Securities and Exchange Commission.

The coupon will be 7% for the first year. After that, interest will be equal to 4.5 times the reference rate, subject to a cap of 7% and a floor of 0%. The reference rate is the spread of the 30-year CMS rate over the five-year CMS rate minus. Interest is payable quarterly.

The payout at maturity will be par.

The notes will be callable at par in whole but not in part on June 30, 2015, June 30, 2016, June 30, 2019 and June 30, 2024.

RBC Capital Markets, LLC is the agent.

The notes will price on June 25 and settle on June 30.

The Cusip number is 78010UVX2.

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