RBC plans seven-year principal-protected averaging notes on indexes

By Toni Weeks

San Diego, Oct. 4 - Royal Bank of Canada plans to price 0% upside participation equity-linked averaging notes due Nov. 4, 2019 linked to a basket consisting of equal weights of the Dow Jones industrial average and the FTSE 100 index, according to a 424B2 filing with the Securities and Exchange Commission.

If the final basket level is greater than the initial basket level, the payout at maturity will be par plus 100% to 110% of the basket return. The exact participation rate will be set at pricing. If the final basket level is less than or equal to the initial basket level, the payout will be par.

The initial basket level will be 100. The final basket level will be 100 plus an amount equal to one plus the sum of (a) 50% of the return of the Dow and (b) 50% of the return of the FTSE 100.

When calculating a basket component's return, its final level will be the average of its closing levels on the 28 quarterly valuation dates.

Wells Fargo Securities, LLC is the agent.

The notes will price in October and settle in November.

The Cusip number is 78008SJY3.

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