By Angela McDaniels
Tacoma, Wash., May 14 - Royal Bank of Canada priced $2.75 million of 0% absolute return barrier notes due May 14, 2014 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
A barrier event will occur if the index closes below the barrier level during the life of the notes. The barrier level is 70% of the initial index level.
If the final index level is greater than the initial index level, the payout at maturity will be par plus the index return.
If the final index level is less than the initial index level and a barrier event has not occurred, the payout will be par plus the absolute value of the index return.
If the final index level is less than the initial index level and a barrier event has occurred, investors will be fully exposed to the decline from the initial index level to the final index level.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
|
| Issue: | Absolute return barrier notes
|
| Underlying index: | S&P 500
|
| Amount: | $2,751,000
|
| Maturity: | May 14, 2014
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If final index level is greater than initial index level, par plus index return; if final index level is less than initial index level and barrier event has not occurred, par plus absolute value of index return; if final index level is less than initial index level and barrier event has occurred, full exposure to decline from initial index level to final index level
|
| Barrier event: | Index closes below barrier level during life of notes
|
| Initial index level: | 1,357.99
|
| Barrier level: | 950.59, 70% of initial index level
|
| Pricing date: | May 10
|
| Settlement date: | May 15
|
| Underwriter: | RBC Capital Markets, LLC
|
| Fees: | 0.25%
|
| Cusip: | 78008T5H3
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
