Published on 7/29/2014 in the Prospect News Structured Products Daily.
New Issue: RBC prices $5 million 6.12% reverse convertibles linked to S&P, Russell
By Angela McDaniels
Tacoma, Wash., July 29 – Royal Bank of Canada priced $5 million of 6.12% cash-settled reverse convertible notes due April 28, 2016 linked to the worst performing of the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly.
The notes will be automatically called at par if both indexes close at or above their initial levels on any quarterly call date.
If the notes are not called, the payout at maturity will be par unless the final level of either index is less than its barrier level, 70% of its initial level, in which case investors will lose 1% for every 1% that the worst-performing index declines below its initial level.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
|
| Issue: | Cash-settled reverse convertible notes
|
| Underlying indexes: | S&P 500 and Russell 2000
|
| Amount: | $5 million
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| Maturity: | April 28, 2016
|
| Coupon: | 6.12%, payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par unless final level of either index is less than barrier level, in which case 1% loss for every 1% that worst-performing index declines below initial level
|
| Call option: | Automatically at par if both indexes close at or above initial levels on Oct. 27, 2014, Jan. 26, 2015, April 27, 2015, July 27, 2015, Oct. 26, 2015, Jan. 25, 2016 or April 25, 2016
|
| Initial index levels: | 1,978.34 for S&P 500 and 1,144.721 for Russell 2000
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| Barrier levels: | 1,384.84 for S&P 500 and 801.305 for Russell 2000; 70% of initial levels
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| Pricing date: | July 25
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| Settlement date: | July 30
|
| Underwriter: | RBC Capital Markets, LLC
|
| Fees: | None
|
| Cusip: | 78010UQ75
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