RBC plans to price PLUS linked to basket of two indexes, two ETFs

By Toni Weeks

San Luis Obispo, Calif., Dec. 16 – Royal Bank of Canada plans to price 0% Performance Leveraged Upside Securities due February 2016 linked to a basket containing two indexes and two exchange-traded funds, equally weighted, according to an FWP filing with the Securities and Exchange Commission.

The basket components are the S&P MidCap 400 index, Russell 2000 index, iShares MSCI EAFE ETF and iShares MSCI Emerging Markets ETF.

The payout at maturity will be par plus 300% of any basket gain, subject to a maximum payment of at least $11.20 per $10.00 note. The exact maximum payment will be set at pricing.

Investors will be exposed to any decline in the basket from its initial level.

The notes (Cusip: 78011Y843) are expected to price Jan. 2.

RBC Capital Markets, LLC is the agent. Morgan Stanley Wealth Management is the dealer.

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