RBC plans barrier absolute return notes linked to the S&P 500 index

By Devika Patel

Knoxville, Tenn., Jan. 13 – Royal Bank of Canada plans to price 0% barrier absolute return notes due Jan. 31, 2019 linked to the S&P 500 index, according to an FWP filing with the Securities and Exchange Commission.

If the index finishes above the initial level, the payout at maturity will be par plus the gain.

If the index finishes below the initial level but never closes below the 71.75% to 74.75% barrier level during the life of the notes, the payout will be par plus the absolute value of the index return.

Otherwise, investors will lose 1% for each 1% decline.

RBC Capital Markets, LLC is the agent.

The notes (Cusip: 78012KYT8) will price on Jan. 26 and settle on Jan. 30.

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