Published on 4/7/2014 in the Prospect News Structured Products Daily.
New Issue: RBC prices $5.6 million buffered PLUS linked to S&P 500, three ETFs
By Angela McDaniels
Tacoma, Wash., April 7 - Royal Bank of Canada priced $5.6 million of 0% buffered Performance Leveraged Upside Securities due Dec. 31, 2014 linked to a basket of one index and three exchange-traded funds, according to a 424B2 filing with the Securities and Exchange Commission.
The basket includes the S&P 500 index with a 50% weight, the iShares Russell 2000 ETF with an 18% weight, the iShares MSCI EAFE ETF with a 17% weight and the iShares MSCI Emerging Markets ETF with a 15% weight.
If the final basket level is greater than the initial basket level, the payout at maturity will be par of $10.00 plus double the basket return, subject to a maximum payment of $10.73 per note. Investors will receive par if the basket declines by 5% or less and will lose 1% for every 1% that it declines beyond 5%.
RBC Capital Markets, LLC is the agent with Morgan Stanley Wealth Management as dealer.
Issuer: | Royal Bank of Canada
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Issue: | Buffered Performance Leveraged Upside Securities
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Underlying basket: | S&P 500 index (50% weight), iShares Russell 2000 ETF (18% weight), iShares MSCI EAFE ETF (17% weight) and iShares MSCI Emerging Markets ETF (15% weight)
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Amount: | $5.6 million
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Maturity: | Dec. 31, 2014
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Coupon: | 0%
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Price: | Par of $10.00
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Payout at maturity: | If final basket level is greater than initial basket level, par plus 200% of basket return, subject to maximum payment of $10.73 per note; par if basket declines by 5% or less; 1% loss for every 1% that basket declines beyond 5%
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Initial levels: | 1,888.77 for S&P 500; $117.15 for iShares Russell 2000; $67.57 for iShares MSCI EAFE; $41.41 for iShares MSCI Emerging Markets
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Pricing date: | April 3
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Settlement date: | April 8
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Agent: | RBC Capital Markets, LLC
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Dealer: | Morgan Stanley Wealth Management
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Fees: | 0.18%
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Cusip: | 78011Q162
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