By Angela McDaniels
Tacoma, Wash., Feb. 19 - Royal Bank of Canada priced $19.36 million of 0% buffered bullish enhanced return notes with averaging due Feb. 20, 2018 linked to a basket of indexes and exchange-traded funds, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the S&P 500 index with a 57% weight, the S&P MidCap 400 index with a 10% weight, the Russell 2000 index with a 8% weight, the iShares MSCI EAFE ETF with a 20% weight and the iShares MSCI Emerging Markets ETF with a 5% weight.
Each basket component will have an average level equal to the average of its closing levels on 16 quarterly observation dates. The average percentage change will be the sum of the basket components' weighted average returns and cannot be less than zero.
If the basket return is greater than or equal to negative 20% and the average percentage change is positive, the payout at maturity will be par plus 214% of the average percentage change.
If the basket return is greater than or equal to negative 20% and the average percentage change is zero or negative, the payout will be par.
If the basket return is less than negative 20%, the payout will be (a) par (b) minus 1.25% for every 1% that the basket's decline exceed 20% (c) plus 214% of the average percentage change.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
|
| Issue: | Buffered bullish enhanced return notes with averaging
|
| Underlying basket: | S&P 500 index (57% weight), S&P MidCap 400 index (10% weight), Russell 2000 index (8% weight), iShares MSCI EAFE ETF (20% weight) and iShares MSCI Emerging Markets ETF (5% weight)
|
| Amount: | $19.36 million
|
| Maturity: | Feb. 20, 2018
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If basket return is greater than or equal to negative 20% and average percentage change is positive, par plus 214% of average percentage change; if basket return is greater than or equal to negative 20% and average percentage change is zero or negative, par; if basket return is less than negative 20%, (a) par (b) minus 1.25% for every 1% that basket's decline exceed 20% (c) plus 214% of average percentage change
|
| Initial levels: | 1,838.63 for S&P 500; 1,346.86 for S&P MidCap 400; 1,149.21 for Russell 2000; $66.49 for iShares MSCI EAFE; $39.66 for iShares MSCI EM
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| Pricing date: | Feb. 14
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| Settlement date: | Feb. 20
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| Underwriter: | RBC Capital Markets, LLC
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| Fees: | None
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| Cusip: | 78010UQA8
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