RBC plans direct investment notes tied to EquityCompass strategy

By Susanna Moon

Chicago, Jan. 7 – Royal Bank of Canada plans to price 0% direct investment notes due March 8, 2017 linked to the EquityCompass Equity Risk Management Strategy, according to a 424B2 filing with the Securities and Exchange Commission.

The initial investment in the hypothetical portfolio was $981 per $1,000 principal amount of notes. RBC reduced this by 0.15% on the pricing date and will reduce it by a further 0.15% each time the portfolio is reallocated, which occurs monthly, and on the final valuation date.

The payout at maturity will be the final value of the portfolio.

If the portfolio value is less than or equal to 50% of the initial investment on any day during the life of the notes, the notes will be called, and the payout will be the value of the portfolio on the first trading day following the call trigger date.

RBC Capital Markets, LLC is the underwriter.

The notes will price on Feb. 3 and settle on Feb. 8.

The Cusip number is 78012KKQ9.

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