Published on 10/7/2015 in the Prospect News Structured Products Daily.
New Issue: RBC prices $4.52 million autocallable buffered PLUS linked to three indexes
By Angela McDaniels
Tacoma, Wash., Oct. 7 – Royal Bank of Canada priced $4.52 million of 0% autocallable buffered Performance Leveraged Upside Securities due Oct. 3, 2018 linked to a basket of indexes, according to a 424B2 filing with the Securities and Exchange Commission.
The basket includes the Euro Stoxx 50 index with a 50% weight, the Dow Jones industrial average with a 25% weight and the Russell 2000 index with a 25% weight.
The notes will be automatically called at par of $10 plus 15% if the basket’s closing level on March 30, 2017 is greater than or equal to 115% of the initial basket level.
If the notes are not called and the final basket level is greater than the initial basket level, the payout at maturity will be par of $10 plus 105% of the basket return. Investors will receive par if the basket declines by 11.7% or less and will lose 1% for every 1% that the basket declines beyond 11.7%.
RBC Capital Markets, LLC is the agent. Distribution is through Morgan Stanley Wealth Management.
| Issuer: | Royal Bank of Canada
|
| Issue: | Autocallable buffered Performance Leveraged Upside Securities
|
| Underlying indexes: | Euro Stoxx 50 (50% weight), Dow Jones industrial average (25% weight) and Russell 2000 (25% weight)
|
| Amount: | $4,524,000
|
| Maturity: | Oct. 3, 2018
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | If notes are not called and final basket level is greater than initial basket level, par plus 105% of basket return; par if basket declines by 11.7% or less; 1% loss for every 1% that basket declines beyond 11.7%
|
| Call: | Automatically at par plus 15% if basket’s closing level on March 30, 2017 is greater than or equal to 115% of initial basket level
|
| Initial levels: | 3,100.67 for Euro Stoxx 50, 16,284.70 for Dow and 1,100.688 for Russell 2000
|
| Pricing date: | Sept. 30
|
| Settlement date: | Oct. 5
|
| Agent: | RBC Capital Markets, LLC
|
| Distribution: | Morgan Stanley Wealth Management
|
| Fees: | 3%
|
| Cusip: | 78013D797
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