RBC plans 0% absolute return barrier notes linked to iShares MSCI EAFE

By Jennifer Chiou

New York, June 12 – Royal Bank of Canada plans to price 0% absolute return barrier notes due June 30, 2016 linked to the iShares MSCI EAFE exchange-traded fund, according to an FWP with the Securities and Exchange Commission.

A barrier event will occur if the closing share price falls below the barrier level, 73.5% to 77.5% of the initial level, on any day during the life of the notes. The exact barrier level will be set at pricing.

If the fund return is positive, the payout at maturity will be par plus the fund return.

If the return is negative and a barrier event has not occurred, the payout at maturity will be par plus the absolute value of the fund return.

If the fund return is negative and a barrier event has occurred, investors will share in those losses.

The notes (Cusip: 78010UD87) are expected to price on June 25 and settle on June 30.

RBC Capital Markets, LLC is the agent.

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