RBC plans to price leveraged buffered notes due 2018 tied to S&P 500

By Devika Patel

Knoxville, Tenn., Jan. 31 – Royal Bank of Canada intends to offer leveraged buffered notes due 2018 linked to the S&P 500 index, according to a 424B2 filed with the Securities and Exchange Commission.

The payout at maturity will be par plus 150% of any gain in the index, up to a maximum settlement amount that is expected to be between $1,131.10 and $1,154.05 per $1,000 of notes; the exact cap and maturity date will be set at pricing.

Investors will receive par if the index declines by up to 5% and will lose 1% for each 1% decline beyond the 5% buffer.

RBC Capital Markets, LLC is the agent.

The Cusip number is 78012KYX9.

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