By Toni Weeks
San Diego, Jan. 20 - Royal Bank of Canada priced $9.64 million of 0% leveraged buffered equity index-linked notes due July 25, 2013 tied to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
If the index return is positive, the payout at maturity will be par plus 1.5 times the index gain, subject to a maximum return of $1,154.50 per $1,000 note.
Investors will receive par if the index falls by up to 10% and will share in losses at a rate of 1.1111% per 1% drop beyond 10%.
The initial index level, 1,301.17, is lower than the actual closing level of 1,308.04 on the pricing date.
Goldman, Sachs & Co. is the underwriter.
| Issuer: | Royal Bank of Canada
|
| Issue: | Leveraged buffered index-linked notes
|
| Underlying index: | S&P 500
|
| Amount: | $9,639,000
|
| Maturity: | July 25, 2013
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If index return is positive, par plus 150% of index gain, capped at $1,154.50 per note; par if index falls by up to 10%; 1.1111% loss for every 1% decline beyond 10%
|
| Initial level: | 1,301.17
|
| Pricing date: | Jan. 18
|
| Settlement date: | Jan. 25
|
| Underwriter: | Goldman Sachs & Co.
|
| Fees: | 0.25%
|
| Cusip: | 78010V840
|
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