By Susanna Moon
Chicago, Jan. 8 – Royal Bank of Canada priced $5.03 million of 0% notes due Feb. 8, 2017 linked to the EquityCompass Equity Risk Management Strategy, according to a 424B2 filing with the Securities and Exchange Commission.
The initial investment in the hypothetical portfolio was $981 per $1,000 principal amount of notes. RBC reduced this by 0.15% on the pricing date and will reduce it by a further 0.15% each time the portfolio is reallocated, which occurs monthly, and on the final valuation date.
The payout at maturity will be the final value of the portfolio.
If the portfolio value is less than or equal to 50% of the initial investment on any day during the life of the notes, the notes will be called, and the payout will be the value of the portfolio on the first trading day following the call trigger date.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
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| Issue: | Notes
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| Underlying index: | EquityCompass Equity Risk Management Strategy
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| Amount: | $5,034,000
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| Maturity: | Feb. 8, 2017
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | Cash amount equal to final value of portfolio underlying strategy; initial investment is $981 per note
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| Call: | Automatically if portfolio value falls to or below 50% of initial investment on any day; payout is cash amount equal to value of portfolio on following day
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| Put option: | At any time subject to minimum of $10,000 principal amount of notes
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| Initial level: | 3,723.439
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| Pricing date: | Jan. 6
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| Settlement date: | Jan. 11
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 1.4%
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| Cusip: | 78012KKB2
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