Published on 11/3/2014 in the Prospect News Structured Products Daily.
New Issue: RBC prices $28.99 million Stars due 2015 linked to S&P 500 index
By Jennifer Chiou
New York, Nov. 3 – Royal Bank of Canada priced $28,989,860 of 0% Strategic Accelerated Redemption Securities due Nov. 16, 2015 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
If the index closes at or above its initial level on a quarterly observation date, the notes will be called at par of $10 plus an annualized call premium of 8.8%. The observation dates are on April 17, 2015, July 24, 2015 and Nov. 6, 2015.
If the notes are not called and the index finishes at or above the initial value, the payout at maturity will be par.
Otherwise, investors will be exposed to any losses.
BofA Merrill Lynch is the agent.
Issuer: | Royal Bank of Canada
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Issue: | Strategic Accelerated Redemption Securities
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Underlying index: | S&P 500
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Amount: | $28,989,860
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Maturity: | Nov. 16, 2015
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Coupon: | 0%
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Price: | Par of $10
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Payout at maturity: | If index finishes at or above initial value, par; otherwise, investors will be exposed to any losses
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Call: | Par plus 8.8% per year if index closes at or above its initial level on April 17, 2015, July 24, 2015 and Nov. 6, 2015
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Initial level: | 1,994.65
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Pricing date: | Oct. 30
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Settlement date: | Nov. 6
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Agent: | BofA Merrill Lynch
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Fees: | 1.25%
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Cusip: | 78011X563
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