Published on 4/17/2015 in the Prospect News Structured Products Daily.
New Issue: RBC prices $2 million trigger return optimization notes linked to Russell 2000
By Angela McDaniels
Tacoma, Wash., April 17 – Royal Bank of Canada priced $2 million of 0% trigger return optimization securities due April 20, 2018 linked to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
If the index return is positive, the payout at maturity will be par of $10 plus 1.5 times the index return, up to a maximum return of 36.5%. If the index return is negative or zero and the index finishes at or above the trigger level, 75% of the initial index level, the payout will be par. If the index finishes below the trigger level, investors will be fully exposed to the decline.
UBS Financial Services Inc. and RBC Capital Markets, LLC are the agents.
Issuer: | Royal Bank of Canada
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Issue: | Trigger return optimization securities
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Underlying index: | Russell 2000
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Amount: | $2 million
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Maturity: | April 20, 2018
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Coupon: | 0%
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Price: | Par of $10
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Payout at maturity: | Par plus 150% of any index gain, capped at 36.5%; par if index falls by up to 25%; full exposure to any losses if index finishes below trigger level
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Initial index level: | 1,275.35
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Trigger level: | 956.513, 75% of initial price
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Pricing date: | April 15
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Settlement date: | April 20
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Agents: | UBS Financial Services Inc. and RBC Capital Markets, LLC
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Fees: | 2.5%
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Cusip: | 780082806
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