Published on 4/15/2014 in the Prospect News Structured Products Daily.
New Issue: RBC prices $2 million return optimization notes on basket of 14 stocks
By Toni Weeks
San Luis Obispo, Calif., April 15 - Royal Bank of Canada priced $2 million of 0% return optimization securities due May 15, 2015 linked to an equally weighted basket of common stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The basket stocks are Anadarko Petroleum Corp., Celanese Corp., Continental Resources, Inc., Dominion Resources, Inc., Dow Chemical Co., Enterprise Products Partners LP, Energy Transfer Equity, LP, General Motors Co., Halliburton Co., Marathon Oil Corp., Nucor Corp., Occidental Petroleum Corp., Schlumberger NV and Southwestern Energy Co.
If the basket return is positive, the payout at maturity will be par of $10 plus triple the basket return, subject to a maximum return of 15.45%. If the basket return is negative, investors will have one-to-one exposure to the decline.
UBS Financial Services Inc. and RBC Capital Markets, LLC are the underwriters.
| Issuer: | Royal Bank of Canada
|
| Issue: | Return optimization securities
|
| Underlying basket: | Anadarko Petroleum Corp., Celanese Corp., Continental Resources, Inc., Dominion Resources, Inc., Dow Chemical Co., Enterprise Products Partners LP, Energy Transfer Equity, LP, General Motors Co., Halliburton Co., Marathon Oil Corp., Nucor Corp., Occidental Petroleum Corp., Schlumberger NV and Southwestern Energy Co.
|
| Amount: | $2,006,500
|
| Maturity: | May 15, 2015
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus 300% of any basket gain, up to 15.45% maximum return; full exposure to any basket decline
|
| Initial basket level: | 100
|
| Pricing date: | April 11
|
| Settlement date: | April 16
|
| Agents: | UBS Financial Services Inc. and RBC Capital Markets, LLC
|
| Fees: | 2%
|
| Cusip: | 78011Q121
|
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