New Issue: RBC sells $11.80 million barrier absolute return notes on S&P 500

By Cady Vishniac

Detroit, Dec. 15 – Royal Bank of Canada priced $11,802,000 of 0% barrier absolute return notes due June 12, 2025 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

If the index finishes at or above its initial level, the payout at maturity will be par plus the index return, capped at par plus 56.5%.

If the index falls by up to 21.5%, the payout will be par plus the absolute value of the index return.

If the index falls by more than 21.5%, investors will lose 1% for every 1% decline below its initial level.

RBC Capital Markets, LLC is the agent.

Issuer:	Royal Bank of Canada
Issue:	Barrier absolute return notes
Underlying indexes:	S&P 500
Amount:	$11,802,000
Maturity:	June 12, 2025
Coupon:	0%
Price:	Par
Payout at maturity:	Par plus the index return, capped at par plus 56.5%; par plus the absolute value of the index return if the index falls by up to 21.5%; otherwise, full exposure to any decline beyond 21.5%
Initial level:	3,691.96
Barrier level:	2,898.19, 78.5% of initial level
Pricing date:	Dec. 7
Settlement date:	Dec. 10
Underwriter:	RBC Capital Markets, LLC
Fees:	2.75%
Cusip:	78016ESP3

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