RBC to sell contingent coupon buffer enhanced return notes on S&P 500

By Devika Patel

Knoxville, Tenn., Aug. 21 – Royal Bank of Canada plans to price 57- to 63-month 0% contingent coupon buffer enhanced return notes linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

The exact maturity date will be set at pricing.

Each month, the notes will pay a contingent coupon at an annual rate of 4.25% if the index closes at or above its knock-in level, 80% of its initial level, on each date of that month.

The payout at maturity will be par plus the contingent coupon if the index finishes at or above 80% of its initial level and the index has finished at or above the 80% knock-in level on each day of the prior month. If the index finishes below the knock-in level and has closed below the knock-in level on one or more days during the prior month, investors will lose 1% for each 1% decline of the index from its initial level.

If the index has closed below the knock-in level on one or more days during the prior month but finishes above the knock-in level, the payout will be par.

The exact deal terms will be set at pricing.

RBC Capital Markets, LLC is the agent.

The notes (Cusip: 78012K5B9) will price on Aug. 29 and settle on Sept. 1.

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