New Issue: RBC prices $1.3 million levered market plus notes linked to S&P 500

By Angela McDaniels

Tacoma, Wash., July 2 – Royal Bank of Canada priced $1.3 million of 0% levered market plus notes due July 5, 2019 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

If the final index level is greater than the initial index level, the payout at maturity will be par plus 1.28 times the index return. Investors will receive par if the index declines by 30% or less and will be fully exposed to the index’s decline from its initial level if it declines by more than 30%.

RBC Capital Markets, LLC is the underwriter with J.P. Morgan Securities LLC as placement agent.

Issuer:	Royal Bank of Canada
Issue:	Levered market plus notes
Underlying index:	S&P 500
Amount:	$1.3 million
Maturity:	July 5, 2019
Coupon:	0%
Price:	Par
Payout at maturity:	If final index level is greater than initial index level, par plus 1.28 times index return; par if index declines by 30% or less; full exposure to index’s decline from initial level if index declines by more than 30%
Initial index level:	1,960.23
Barrier level:	1,372.16, 70% of initial level
Pricing date:	June 30
Settlement date:	July 3
Underwriter:	RBC Capital Markets, LLC
Placement agent: J.P. Morgan Securities LLC
Fees:	3%
Cusip:	78010UK30

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