New Issue: RBC prices $1.26 million barrier absolute return notes tied to S&P 500

By Susanna Moon

Chicago, Dec. 22 – Royal Bank of Canada priced $1.26 million of 0% barrier absolute return notes due Dec. 26, 2018 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

If the index finishes above its initial level, the payout at maturity will be par plus the gain.

If the index falls but never closes below the 74% barrier level during the life of the notes, the payout will be par plus the absolute value of the return.

Otherwise, investors will be fully exposed to any losses.

RBC Capital Markets LLC is the underwriter.

Issuer:	Royal Bank of Canada
Issue:	Barrier absolute return notes
Underlying index:	S&P 500
Amount:	$1,258,000
Maturity:	Dec. 26, 2018
Coupon:	0%
Price:	Par
Payout at maturity:	If index gain, par plus the return; if index falls never dips below barrier, par plus absolute value of return; otherwise, full exposure to any losses
Initial level:	2,270.76
Barrier level:	1,680.36, 74% of initial level
Pricing date:	Dec. 20
Settlement date:	Dec. 23
Underwriter:	RBC Capital Markets LLC
Fees:	None
Cusip:	78012KXK8

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