By Angela McDaniels
Tacoma, Wash., June 26 – Royal Bank of Canada priced $1.18 million of 0% absolute return barrier notes due June 30, 2016 linked to the iShares MSCI EAFE exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
A barrier event will occur if the ETF's closing share price falls below the barrier level, 77.5% of the initial share price, on any day during the life of the notes.
If the ETF return is positive, the payout at maturity will be par plus the ETF return.
If the ETF return is negative and a barrier event has not occurred, the payout will be par plus the absolute value of the ETF return.
If the ETF return is negative and a barrier event has occurred, investors will have one-to-one exposure to the ETF's decline.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
|
| Issue: | Absolute return barrier notes
|
| Underlying ETF: | iShares MSCI EAFE
|
| Amount: | $1,182,000
|
| Maturity: | June 30, 2016
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If ETF return is positive, par plus ETF return; if ETF return is negative or zero and barrier event has not occurred, par plus absolute value of ETF return; if final share price is negative and barrier event has occurred, full exposure to decline
|
| Barrier event: | ETF's closing share price falls below barrier level on any day during life of notes
|
| Initial share price: | $68.22
|
| Barrier level: | $52.87, 77.5% of initial price
|
| Pricing date: | June 25
|
| Settlement date: | June 30
|
| Underwriter: | RBC Capital Markets, LLC
|
| Fees: | None
|
| Cusip: | 78010UD87
|
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