New Issue: RBC prices $1.38 million leveraged buffered notes tied to index basket

By Marisa Wong

Morgantown, W.Va., Jan. 11 – Royal Bank of Canada priced $1.38 million of 0% leveraged buffered notes due July 17, 2018 linked to a basket of five indexes, according to a 424B2 filed with the Securities and Exchange Commission.

The basket consists of the Euro Stoxx 50 index with a 37% initial weight, the FTSE 100 index with a 23% initial weight, the Topix index with a 23% initial weight, the Swiss Market index with a 9% initial weight and the S&P/ASX 200 index with an 8% initial weight.

The payout at maturity will be par plus 150% of any basket gain, up to a maximum settlement amount of $1,311.25 per $1,000 of notes. Investors will receive par if the basket falls by 10% or less and will lose 1.1111% for each 1% decline beyond 10%.

RBC Capital Markets, LLC is the agent.

Issuer:	Royal Bank of Canada
Issue:	Leveraged buffered notes
Underlying indexes:	Euro Stoxx 50 (37% initial weight), FTSE 100 (23% initial weight), Topix (23% initial weight), Swiss Market (9% initial weight) and S&P/ASX 200 (8% initial weight)
Amount:	$1,381,000
Maturity:	July 17, 2018
Coupon:	0%
Price:	Par of $1,000
Payout at maturity:	Par plus 1.5 times any basket gain, return capped at 31.125%; par if basket falls by up to 10%; 1.1111% loss for every 1% drop beyond 10%
Initial levels:	3,321.17 for Euro Stoxx, 7,210.05 for FTSE, 1,553.32 for Topix, 8,417.46 for Swiss Market and 5,755.581 for S&P/ASX
Pricing date:	Jan. 6
Settlement date:	Jan. 13
Underwriter:	RBC Capital Markets, LLC
Fees:	None
Cusip:	78012KYK7

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