RBC plans 0% growth securities linked to fund basket via Wells Fargo

By Susanna Moon

Chicago, Aug. 8 - Royal Bank of Canada plans to price 0% growth securities with capped upside and fixed percentage buffered downside due March 1, 2016 linked to a basket of four exchange-traded funds, according to a 424B2 filing with the Securities and Exchange Commission.

The basket consists of the SPDR S&P 500 exchange-traded fund trust with a 45% weight, the iShares Russell 2000 index fund with a 20% weight, the iShares MSCI EAFE index fund with a 20% weight and the iShares MSCI Emerging Markets index fund with a 15% weight.

The payout at maturity will be par plus 1.5 times any gain in the basket, up to a maximum return of $1,420 to $1,520 per $1,000 principal amount. The exact cap will be set at pricing.

Investors will receive par if the basket falls by up to 15% and will be exposed to losses beyond 15%.

Wells Fargo Securities, LLC is the agent.

The notes will price in August and settle in September.

The Cusip number is 78008TNC4.

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