By Toni Weeks
San Diego, Sept. 28 - Royal Bank of Canada priced $3 million of 0% bullish buffered return notes due July 31, 2012 linked to a basket of exchange-traded funds, according to a 424B2 filing with the Securities and Exchange Commission.
The basket includes the SPDR S&P 500 trust, which constitutes two-thirds of the basket, and the SPDR S&P Gold trust and iShares Dow Jones U.S. Real Estate index fund, each of which makes up one-sixth of the basket.
The payout at maturity will be par plus any increase in the basket, subject to a maximum return of 16.5%. Investors will receive par if the basket declines by 10% or less and will lose 1% for every 1% that it declines beyond 10%.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
|
| Issue: | Bullish buffered return notes
|
| Underlying basket: | SPDR S&P 500 trust (two-thirds of basket); SPDR S&P Gold Trust and iShares Dow Jones U.S. Real Estate index fund (each one-sixth of basket)
|
| Amount: | $3 million
|
| Maturity: | July 31, 2012
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par plus any basket gain, with return capped at 16.5%; par if basket falls by 10% or less; 1% loss for every 1% decline beyond buffer
|
| Initial prices: | $116.25 for SPDR S&P 500; $157.58 for SPDR Gold Trust; $51.94 for iShares Dow Jones Real Estate
|
| Pricing date: | Sept. 26
|
| Settlement date: | Sept. 29
|
| Agent: | RBC Capital Markets, LLC
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| Fees: | None
|
| Cusip: | 78008TUT9
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