RBC to price absolute return barrier notes linked to iShares MSCI ETFs

By Angela McDaniels

Tacoma, Wash., Aug. 28 – Royal Bank of Canada plans to price 0% absolute return barrier enhanced return notes due Sept. 2, 2021 linked to the lesser performing of the iShares MSCI EAFE exchange-traded fund and the iShares MSCI Emerging Markets exchange-traded fund, according to an FWP filing with the Securities and Exchange Commission.

If the return of the lesser-performing ETF is positive, the payout at maturity will be par plus 140% to 150% of the lesser-performing ETF’s return. The exact leverage factor will be set at pricing.

If the lesser-performing ETF’s final share price is less than or equal to its initial share price but greater than or equal to its barrier level, 70% of its initial share price, the payout will be par plus the absolute value of that ETF’s return.

If the lesser-performing ETF finishes below its barrier level, investors will be fully exposed to that ETF’s decline from its initial share price.

RBC Capital Markets LLC is the underwriter.

The notes will price Aug. 29.

The Cusip number is 78012K5M5.

© 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.