By Angela McDaniels
Tacoma, Wash., July 29 - Royal Bank of Canada priced $3 million of redeemable leveraged steepener range accrual notes due July 31, 2028, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly and accrues at 10% per year for the first year. After that, interest will equal 35 times the spread of the 30-year Constant Maturity Swap rate over the 10-year CMS rate, subject to a minimum interest rate of 0% and a maximum interest rate of 15%.
Beginning July 31, 2009, the notes are callable at par on any interest payment date.
If the notes are not called, the payout at maturity will be par.
RBC Capital Markets Corp. is the underwriter.
| Issuer: | Royal Bank of Canada
|
| Issue: | Redeemable leveraged steepener range accrual notes
|
| Amount: | $3 million
|
| Maturity: | July 31, 2028
|
| Coupon: | 10% per year for first year; after that, 35 times the spread of the 30-year CMS rate over the 10-year CMS rate, with a floor of 0% and a cap of 15%; payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Call option: | At par on interest payment dates from July 31, 2009 onward
|
| Pricing date: | July 28
|
| Settlement date: | July 31
|
| Underwriter: | RBC Capital Markets Corp.
|
| Fees: | 4.02%
|
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