RBC plans 25- to 28-month leveraged buffered notes on index basket

By Devika Patel

Knoxville, Tenn., March 22 – Royal Bank of Canada will price 25- to 28-month leveraged buffered notes due 2018 linked to a basket of five indexes, according to a 424B2 filed with the Securities and Exchange Commission.

The basket includes the Euro Stoxx 50 index with a 37% initial weight, the FTSE 100 index with a 23% initial weight, the Topix index with a 23% initial weight, the Swiss Market index with a 9% initial weight and the S&P/ASX 200 index with an 8% initial weight.

The payout at maturity will be par plus 1.6 times any basket gain, up to a maximum settlement amount that is expected to be between $1,326.40 and $1,384 for every $1,000 of notes. The exact cap will be set at pricing.

Investors will receive par if the basket falls by 15% or less and will lose 1.1765% for every 1% decline in the basket beyond 15%.

RBC Capital Markets, LLC is the agent.

The Cusip number is 78012KMJ3.

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