RBC plans one-year Stars tied to iShares Russell, MSCI EM funds basket

By Marisa Wong

Madison, Wis., May 30 - Royal Bank of Canada plans to price 0% Strategic Accelerated Redemption Securities due June 2015 linked to a basket of two equally weighted exchange-traded funds, according to an FWP filing with the Securities and Exchange Commission.

The basket consists of the iShares Russell 2000 ETF and the iShares MSCI Emerging Markets ETF.

If the basket closes at or above the initial level on any quarterly observation date, the notes will be called at par plus a call premium of 6% to 10% per year.

The payout at maturity will be par if the basket falls by up to 5% and investors will lose 1% for every 1% decline beyond 5%.

The exact deal terms will be set at pricing.

BofA Merrill Lynch is the agent.

The notes will price and settle in June.

© 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.