By Wendy Van Sickle
Columbus, Ohio, April 29 – Royal Bank of Canada priced $1.21 million of direct investment notes due May 8, 2017 linked to the RBC Capital Markets U.S. Equity Small Cap Focus List, according to a 424B2 filed with the Securities and Exchange Commission.
The list components are American Assets Trust Inc., American Equity Investment Life Holding Co., AMC Entertainment Holdings Inc., CEB Inc., Colony Capital, Inc., Masonite International Corp., Five Below, Inc., InterXion Holding NV, Mercer International, Inc., Mueller Water Products, Inc., Proofpoint, Inc., Provident Financial Services, Inc., PrivateBancorp, Inc., Western Alliance Bancorp. and Wright Medical Group, Inc. They are equally weighted.
Interest is 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 principal amount, 97.75% of the sum of the dividend amounts for each of the basket stocks.
The dividend amount for each stock equals (a) $1,000 divided by the initial price of the applicable stock multiplied by (b) the applicable component weighting multiplied by (c) 100% of the gross cash distributions (including ordinary and extraordinary dividends) per share declared by the applicable stock issuer where the date that the applicable stock has commenced trading ex-dividend on its primary U.S. securities exchange as to each relevant distribution occurs during the relevant interest calculation period.
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 payout will be less than par if the percentage amount is less than 102.3%.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
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| Issue: | Direct investment notes
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| Underlying: | RBC Capital Markets U.S. Equity Small Cap Focus List
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| Amount: | $1,211,000
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| Maturity: | May 8, 2017
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| Coupon: | 97.75% of sum of dividend amounts for each basket stock; payable quarterly but could be zero
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| Price: | Par
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| Payout at maturity: | For each $1,000 principal amount of notes, product of $977.50 and percentage amount, which equals 100% plus sum of weighted returns for basket stocks
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| Pricing date: | April 26
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| Settlement date: | April 29
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| Underwriter: | RBC Capital Markets, LLC
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| Fees: | 1.5%
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| Cusip: | 78012KML8
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