Published on 1/28/2014 in the Prospect News Structured Products Daily.
New Issue: RBC prices $5 million 6.16% cash settled reverse convertibles on S&P 500, Russell
By Marisa Wong
Madison, Wis., Jan. 28 - Royal Bank of Canada priced $5 million of 6.16% cash settled reverse convertible notes reverse convertible notes due Oct. 29, 2015 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 called at par if both indexes close at or above their initial levels on any quarterly call date.
The payout at maturity will be par unless either index finishes below its 70% barrier level, in which case the payout will be par plus the return of the worse performing index.
RBC Capital Markets Corp. is the agent.
Issuer: | Royal Bank of Canada
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Issue: | Cash settled reverse convertible notes
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Underlying indexes: | S&P 500 index, Russell 2000 index
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Amount: | $5 million
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Maturity: | Oct. 29, 2015
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Coupon: | 6.16%, payable quarterly
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Price: | Par
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Call: | At par if both indexes close at or above their initial levels on any quarterly call date
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Payout at maturity: | Par unless either index finishes below barrier level, in which case par plus return of worst performing index
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Initial levels: | 1,790.29 for S&P, 1,144.13 for Russell
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Barrier levels: | 1,253.20 for S&P, 800.89 for Russell; 70% of initial levels
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Pricing date: | Jan. 24
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Settlement date: | Jan. 29
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Agent: | RBC Capital Markets Corp.
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Fees: | None
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Cusip: | 78010UPU5
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