New Issue: RBC sells $299,000 capped leveraged notes due 2018 tied to index basket

By Susanna Moon

Chicago, May 22 – Royal Bank of Canada priced $299,000 of 0% leveraged notes due Oct. 5, 2018 linked to a basket of indexes, according to a 424B2 filing with the Securities and Exchange Commission.

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

The payout at maturity will be par plus triple any basket gain, up to a maximum settlement amount of $1,282 for each $1,000 of notes.

Investors will be exposed to any losses.

RBC Capital Markets, LLC is the underwriter.

Issuer:	Royal Bank of Canada
Issue:	Leveraged notes
Underlying indexes:	Euro Stoxx 50 (37% weight), FTSE 100 (23% weight), Topix (23% weight), Swiss Market (9% weight) and S&P/ASX 200 (8% weight)
Amount:	$299,000
Maturity:	Oct. 5, 2018
Coupon:	0%
Price:	Par
Payout at maturity:	Par plus 3 times any basket gain, capped at 28.2%; exposure to any losses
Initial index levels:	3,641.88 for Stoxx, 7,454.37 for FTSE, 1,580 for Topix, 9,108.25 for Swiss Market and 5,838.402 for S&P/ASX
Pricing date:	May 15
Settlement date:	May 22
Agents:	RBC Capital Markets, LLC
Fees:	None
Cusip:	78012KR25

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