By Toni Weeks
San Diego, June 25 - Royal Bank of Canada priced $854,000 of 0% absolute return barrier notes due June 26, 2014 linked to the S&P 500 index, according to a 424B2 with the Securities and Exchange Commission.
A barrier event occurs if the index closes below the barrier level of 73.5% during the life of the notes.
If the index return is positive, the payout at maturity will be par plus the index return.
If the index return is negative or zero and a barrier event has not occurred, the payout at maturity will be par plus the absolute value of the index decline.
If the index return is negative and a barrier event has occurred, investors will share in losses.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
|
| Issue: | Absolute return barrier notes
|
| Underlying index: | S&P 500
|
| Amount: | $854,000
|
| Maturity: | June 26, 2014
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If index return is positive, par plus index return; if index return is zero or negative and a barrier event has not occurred, par plus absolute value of index return; otherwise, full exposure to losses
|
| Barrier event: | Index closes below barrier level during life of notes
|
| Initial index level: | 1,325.51
|
| Barrier level: | 974.25, 73.5% of initial index level
|
| Pricing date: | June 21
|
| Settlement date: | June 26
|
| Underwriter: | RBC Capital Markets, LLC
|
| Fees: | 2%, used for selling concessions
|
| Cusip: | 78008SBB1
|
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