Published on 2/14/2018 in the Prospect News Structured Products Daily.
New Issue: RBC prices $8.78 million absolute return buffered notes linked to S&P 500, Dow
By Wendy Van Sickle
Columbus, Ohio, Feb. 14 – Royal Bank of Canada priced $8.78 million of 0% absolute return buffered securities due Aug. 14, 2023 linked to the S&P 500 index and the Dow Jones Industrial Average, according to a 424B2 filing with the Securities and Exchange Commission.
The payout at maturity will be par plus the underlying return of the lower-performing index.
If an index’s final level is greater than or equal to its initial level, its underlying return will be 106% of its index return.
If an index’s final level is less than its initial level by up to 20%, its underlying return will be the absolute value of its index return.
If an index’s final level is less than its initial level by more than the 20% buffer, its underlying return will be its index return plus 20%.
RBC Capital Markets, LLC is the agent.
Issuer: | Royal Bank of Canada
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Issue: | Absolute return buffered securities
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Underlying indexes: | S&P 500 and Dow Jones Industrial Average
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Amount: | $8,775,000
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Maturity: | Aug. 14, 2023
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | Par plus underlying return of lower-performing index
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Underlying return: | If index’s final level is greater than or equal to initial level, 106% of index return; if index’s final level is less than initial level by up to 20%, absolute value of index return; if index’s final level is less than initial level by more than 20%, index return plus 20%
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Initial index levels: | 2,619.55 for S&P 500, 24,190.90 for Dow
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Buffer levels: | 2,095.64 for S&P 500, 19,352.72 for Dow
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Pricing date: | Feb. 9
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Settlement date: | Feb. 14
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Agent: | RBC Capital Markets, LLC
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Fees: | 3.25%
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Cusip: | 78013XFQ6
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