RBC to price direct investment notes linked to Cushing 30 MLP index

By Jennifer Chiou

New York, June 16 - Royal Bank of Canada plans to price direct investment notes due July 29, 2011 linked to the Cushing 30 MLP index, according to a 424B2 with the Securities and Exchange Commission.

The 30 index components are publicly traded master limited partnerships that build, operate and maintain energy infrastructure for gathering, processing, storing and transporting crude oil, natural gas, natural gas liquids and refined products for companies that explore and produce those energy resources in North America.

On the third business day after each of Sept. 27, 2010, Dec. 28, 2010 and July 26, 2011 and at maturity, the notes will pay a distribution amount equal to 97.5% of the index yield for that distribution period. The index yield is the amount that a holder would have received in distributions from a portfolio consisting of the index components.

The payout at maturity will be 97.5% of the sum of par and the index return, which could be positive or negative. Therefore, investors will receive less than the principal amount at maturity if the return is below 2.564%.

The notes will price on June 25 and settle on June 30.

RBC Capital Markets Corp. is the underwriter.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.