Published on 6/26/2012 in the Prospect News Structured Products Daily.
New Issue: RBC prices $1.32 million barrier range accrual notes tied to SPDR Gold
By Angela McDaniels
Tacoma, Wash., June 26 - Royal Bank of Canada priced $1.32 million of 0% barrier range accrual notes due Dec. 27, 2012 linked to the SPDR Gold Trust, according to a 424B2 filing with the Securities and Exchange Commission.
At maturity, investors will receive a contingent payment equal to 8% per year multiplied by the proportion of days on which the fund closes between 90% and 125% of its initial price.
In addition to the contingent payment, the payout at maturity will be par if the final share price is greater than or equal to 90% of the initial price. If the final price is less than 90% of the initial price, investors will receive a number of shares of the fund equal to $1,000 divided by the initial price or, at the issuer's option, a cash amount equal to the value of those shares.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
|
| Issue: | Barrier range accrual notes
|
| Underlying trust: | SPDR Gold Trust
|
| Amount: | $1,315,000
|
| Maturity: | Dec. 27, 2012
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If final share price is greater than or equal to barrier price, par; if final share price is less than barrier price, 6.55 shares of trust or equivalent amount in cash; in each case, investors will also receive contingent payment
|
| Contingent payment: | 8% per year multiplied by proportion of days during life of notes on which fund closes within reference range
|
| Initial share price: | $152.64
|
| Barrier price: | $137.38, 90% of initial price
|
| Reference range: | $137.38 to $190.80, inclusive; equal to 90% to 125% of initial share price
|
| Pricing date: | June 22
|
| Settlement date: | June 27
|
| Underwriter: | RBC Capital Markets, LLC
|
| Fees: | 0.75%
|
| Cusip: | 78008SCD6
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
