RBC plans to price market-linked step-up notes linked to index basket

By Devika Patel

Knoxville, Tenn., April 6 – Royal Bank of Canada intends to sell 0% market-linked step-up notes due April 2020 linked to a basket of unequally weighted indexes, according to an FWP filing with the Securities and Exchange Commission.

The basket components are the Euro Stoxx 50 index with a 40% weight, the FTSE 100 Index with a 20% weight, the Nikkei Stock Average index with a 20% weight, the Swiss Market index with a 7.5% weight, the S&P/ASX 200 index with a 7.5% weight and the Hang Seng Index with a 5% weight.

If the basket finishes above the step-up level, the payout at maturity will be par of $10 plus the index gain. The step-up level is expected to be 126% to 132% of the initial level and will be set at pricing.

If the basket is unchanged or gains by up to the step-up level, the payout will be par plus the step-up payment. The step-up payment is expected to be 26% to 32% and will be set at pricing.

Investors will lose 1% for each 1% basket decline.

BofA Merrill Lynch is the agent.

The notes are expected to price and settle in April.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.