RBC to price absolute return barrier notes linked to S&P 500 index

By Devika Patel

Knoxville, Tenn., April 11 – Royal Bank of Canada plans to price 0% absolute return barrier notes due May 1, 2018 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

A barrier event will occur if the index closes below the barrier level, expected to be 68% to 73% of the initial index level, on any day 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 less than or equal to zero and a barrier event has not occurred, the payout will be par plus the absolute value of the index return.

If the index return is less than or equal to zero and a barrier event has occurred, investors will be fully exposed to the decline from the initial index level to the final index level.

RBC Capital Markets, LLC is the agent.

The notes (Cusip: 78012KNK9) will price on April 26 and settle on April 29.

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