New Issue: RBC prices $11 million 20-year redeemable leveraged CMS steepener notes

By Jennifer Chiou

New York, Aug. 27 – Royal Bank of Canada priced $11 million of redeemable leveraged CMS steepener notes due Aug. 28, 2034 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.

Interest will be 9% for the first year. After that, it will be 7.5 times the spread of the 30-year CMS rate over the five-year CMS rate minus 25 basis points, up to a maximum interest rate of 9% per year. Interest is payable quarterly and cannot be less than zero.

The payout at maturity will be par.

The notes are callable at par plus accrued interest on Aug. 28, 2015, Aug. 28, 2016, Aug. 28, 2019, Aug. 28, 2024 and Aug. 28, 2029.

RBC Capital Markets, LLC is the underwriter.

Issuer:	Royal Bank of Canada
Issue:	Redeemable leveraged CMS steepener notes
Underlying rates:	30-year Constant Maturity Swap and five-year CMS rate
Amount:	$11 million
Maturity:	Aug. 28, 2034
Coupon:	9% for first year; after that, 7.5 times CMS spread less 25 bps, capped at 9% and floor of zero; payable quarterly
Price:	Variable
Payout at maturity:	Par
Call option:	At par on Aug. 28, 2015, Aug. 28, 2016, Aug. 28, 2019, Aug. 28, 2024 and Aug. 28, 2029
Pricing date:	Aug. 25
Settlement date:	Aug. 28
Underwriter:	RBC Capital Markets, LLC
Fees:	3.5%
Cusip:	78010UWK9

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.