New Issue: RBC prices $10 million redeemable leveraged steepener notes linked to CMS rates

By Susanna Moon

Chicago, June 30 – Royal Bank of Canada priced $10 million of 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 a 424B2 filing with the Securities and Exchange Commission.

The coupon will be fixed at 7% for the first year. After that, interest will accrue at 4.5 times the spread of the 30-year CMS rate over the five-year CMS rate, up to a maximum rate of 7%. Interest is payable quarterly 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 June 30, 2015, June 30, 2016, June 30, 2019 and June 30, 2024.

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:	$10 million
Maturity:	June 30, 2029
Coupon:	7% for one year; after that, 4.5 times the spread of 30-year CMS rate over five-year CMS rate, capped at 7%; payable quarterly
Price:	Variable
Payout at maturity:	Par
Call option:	At par on June 30, 2015, June 30, 2016, June 30, 2019 and June 30, 2024
Pricing date:	June 25
Settlement date:	June 30
Agent:	RBC Capital Markets, LLC
Fees:	3.5%
Cusip:	78010UVX2

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