By William Gullotti
Buffalo, N.Y., April 25 – Royal Bank of Canada priced $5 million of barrier absolute return notes due April 2, 2026 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
If the index finishes above its initial level, the payout at maturity will be par plus 50% of the index return.
If the index finishes flat or declines up to the barrier level, 70% of the initial index level, the payout will be par plus 1.25 times the absolute value of the index return.
Otherwise, investors will lose 1% for every 1% decline of the index from its initial level.
RBC Capital Markets LLC is the underwriter.
| Issuer: | Royal Bank of Canada
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| Issue: | Barrier absolute return notes
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| Underlying index: | S&P 500 index
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| Amount: | $5 million
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| Maturity: | April 2, 2026
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | If index finishes above its initial level, par plus 50% of the index return; if index finishes flat or declines by no more than 30%, par plus 1.25 times the absolute value of index return; otherwise, full exposure to the index’s decline from its initial level
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| Initial index level: | 5,254.35
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| Barrier level: | 3,678.05; 70% of initial level
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| Pricing date: | March 28
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| Settlement date: | April 2
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| Underwriter: | RBC Capital Markets LLC
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| Fees: | 2.35%
|
| Cusip: | 78017FQX4
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