New Issue: RBC prices $2.55 million barrier absolute return notes tied to S&P 500

By Susanna Moon

Chicago, July 27 – Royal Bank of Canada priced $2.55 million of 0% barrier absolute return notes due July 31, 2018 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

If the index finishes above its initial level, the payout at maturity will be par plus the gain.

If the index falls but never closes below the 71.5% barrier level during the life of the notes, the payout will be par plus the absolute value of the index return.

Otherwise, investors will be fully exposed to any losses.

RBC Capital Markets LLC is the underwriter.

Issuer:	Royal Bank of Canada
Issue:	Barrier absolute return notes
Underlying index:	S&P 500
Amount:	$2.55 million
Maturity:	July 31, 2018
Coupon:	0%
Price:	Par
Payout at maturity:	If index gains, par plus the return; if index falls but never closes below 71.5% barrier level, par plus the absolute value of return; otherwise, full exposure to any losses
Initial level:	2,169.18
Barrier level:	1,550.96, 71.5% of initial level
Pricing date:	July 26
Settlement date:	July 29
Underwriter:	RBC Capital Markets, LLC
Fees:	None
Cusip:	78012KQV2

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