Published on 1/2/2015 in the Prospect News Structured Products Daily.
New Issue: RBC prices $10.25 million PLUS on basket of three indexes, two funds
By Marisa Wong
Madison, Wis., Jan. 2 – Royal Bank of Canada priced $10.25 million of 0% Performance Leveraged Upside Securities due July 6, 2015 linked to a basket containing three indexes and two exchange-traded funds, equally weighted, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the Russell 2000 index with a 30% weight, the Euro Stoxx 50 index with a 30% weight, the Market Vectors Gold Miners exchange-traded fund with a 15% weight, the SPDR S&P Oil & Gas Exploration & Production ETF with a 15% weight and the Topix index with a 10% weight.
The payout at maturity will be par plus double any basket gain, up to a maximum return of $11.15 per $10.00 note.
Investors will be exposed to any losses.
RBC Capital Markets, LLC is the agent. Morgan Stanley Wealth Management will handle distribution.
| Issuer: | Royal Bank of Canada
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| Issue: | Performance Leveraged Upside Securities
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| Underlying basket: | Russell 2000 index (30% weight), Euro Stoxx 50 index (30% weight), Market Vectors Gold Miners ETF (15% weight), SPDR S&P Oil & Gas Exploration & Production ETF (15% weight) and Topix index (10% weight)
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| Amount: | $10,247,310
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| Maturity: | July 6, 2015
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| Coupon: | 0%
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| Price: | Par of $10
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| Payout at maturity: | Par plus 200% of any basket gain, capped at 11.5%; full exposure to losses
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| Initial levels: | 1,213.055 for Russell; 3,135.95 for Euro Stoxx; $18.45 for Gold Miners ETF; $47.95 for Oil & Gas ETF; 1,407.51 for Topix
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| Pricing date: | Dec. 30
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| Settlement date: | Jan. 5
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| Agent: | RBC Capital Markets, LLC with Morgan Stanley Wealth Management handling distribution
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| Fees: | 1.75%
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| Cusip: | 78011Y850
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