RBC to price direct investment notes linked to secular growth basket

By Marisa Wong

Morgantown, W.Va., Dec. 21 – Royal Bank of Canada plans to price direct investment notes due Jan. 6, 2017 linked to a secular growth basket, according to an FWP filing with the Securities and Exchange Commission.

The equally weighted basket consists of 26 stocks: Alliance Data Systems Corp., Allergan, Inc., Amazon.com, Inc., Avago Technologies Ltd., Biogen Inc., Celgene Corp., Cerner Corp., Chipotle Mexican Grill, Inc., salesforce.com, inc., Cognizant Technology Solutions Corp., Dollar General Corp., D.R. Horton Inc., Expedia Inc., Facebook, Inc., Google Inc., Harman International Industries, Inc., Lennar Corp., Monster Beverage Corp., Netflix, Inc., Priceline Group Inc., Regeneron Pharmaceuticals, Inc., Red Hat, Inc., Starbucks Corp., Tractor Supply Co., Vulcan Materials Co. and Whole Foods Market.

Interest will be payable quarterly. The amount of each interest payment, if any, will depend on the amount of dividends paid on each basket stock during the preceding quarter and will equal, for each $1,000 in principal amount, 97.75% of the sum of the dividend amounts for each of the basket stocks.

For each $1,000 principal amount of notes, the payout at maturity will be the product of $977.50 and the percentage amount.

The percentage amount will equal an amount, expressed as a percentage, equal to (a) 100% plus (b) the sum of the weighted returns for the basket stocks. The percentage amount must exceed about 102.3% in order for investors to receive a positive return.

RBC Capital Markets, LLC is the underwriter.

The notes will price Dec. 23.

The Cusip number is 78012KKC0.

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