By Angela McDaniels
Tacoma, Wash., April 27 – Royal Bank of Canada priced $6.94 million of 0% autocallable market-linked step-up notes due April 27, 2018 linked to a basket comprised of the Russell 2000 index with a 50% weight and the Euro Stoxx 50 index with a 50% weight, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be automatically called at par of $10 plus a call premium of 9.66% per year if the basket closes at or above the initial basket level on either annual observation date.
If the notes are not called and the final basket level is greater than the step-up value, 122% of the initial basket level, the payout at maturity will be par plus the basket return.
If the final basket level is greater than or equal to the initial level but less than or equal to the step-up value, the payout will be par plus the step-up payment, 22%.
If the final basket level is less than the initial level, investors will be fully exposed to the decline.
BofA Merrill Lynch is the agent.
| Issuer: | Royal Bank of Canada
|
| Issue: | Autocallable market-linked step-up notes
|
| Underlying indexes: | Russell 2000 and Euro Stoxx 50, equally weighted
|
| Amount: | $6.94 million
|
| Maturity: | April 27, 2018
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | If final basket level is greater than step-up value, par plus basket return; if final basket level is greater than or equal to initial level but less than or equal to step-up value, par plus 22%; full exposure to any basket decline
|
| Call: | At par plus 9.66% per year if basket closes at or above initial basket level on April 29, 2016 or April 21, 2017
|
| Initial index levels: | 1,271.535 for Russell 2000 and 3,697.88 for Euro Stoxx 50
|
| Step-up value: | 122% of initial basket level
|
| Pricing date: | April 23
|
| Settlement date: | April 30
|
| Agent: | BofA Merrill Lynch
|
| Fees: | 2%
|
| Cusip: | 78013B809
|
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