Published on 5/31/2016 in the Prospect News Structured Products Daily.
New Issue: RBC prices $2.1 million bullish barrier enhanced return notes linked to Costco, Nike, Starbucks
By Angela McDaniels
Tacoma, Wash., May 31 – Royal Bank of Canada priced $2.1 million of 0% bullish barrier enhanced return notes due May 31, 2019 linked to an equally weighted basket of the common stocks of Costco Wholesale Corp., Nike, Inc. and Starbucks Corp., according to a 424B2 filing with the Securities and Exchange Commission.
If the basket return is positive, the payout at maturity will be par plus 150% of the basket return, up to a maximum redemption amount of 131.5% of par. Investors will receive par if the basket falls by up to 23% and will be fully exposed to the basket’s decline if it falls by more than 23%.
RBC Capital Markets, LLC is the underwriter.
Issuer: | Royal Bank of Canada
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Issue: | Bullish barrier enhanced return notes
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Underlying stocks: | Costco Wholesale Corp., Nike, Inc. and Starbucks Corp.
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Amount: | $2.1 million
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Maturity: | May 31, 2019
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | Par plus 150% of any basket gain, up to 31.5% maximum return; par if basket declines by up to 23%; full exposure to losses if basket falls by more than 23%
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Initial share prices: | $149.71 for Costco, $55.84 for Nike and $55.29 for Starbucks
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Pricing date: | May 26
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Settlement date: | May 31
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Underwriter: | RBC Capital Markets, LLC
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Fees: | 2.25%
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Cusip: | 78012KPK7
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