RBC to price Leveraged Index Return Notes linked to index basket

By Angela McDaniels

Tacoma, Wash., Oct. 11 – Royal Bank of Canada plans to price 0% Leveraged Index Return Notes due October 2021 linked to a basket of indexes, according to a 424B2 filing with the Securities and Exchange Commission.

The basket is comprised of the Euro Stoxx 50 index with a 40% weight, the FTSE 100 index with a 20% weight, the Nikkei Stock Average index with a 20% weight, the Swiss Market index with a 7.5% weight, the S&P/ASX 200 index with a 7.5% weight and the Hang Seng index with a 5% weight.

If the basket return is positive, the payout at maturity will be par of $10 plus 110% to 130% of the basket return. The exact participation rate will be set at pricing. Investors will receive par if the basket declines by 10% or less and will lose 1% for every 1% that it declines beyond 10%.

BofA Securities Inc. is the agent.

The notes will price and settle in October.

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