By Marisa Wong
Milwaukee, June 28 - Royal Bank of Canada priced $1.75 million of 0% buffered bearish enhanced return notes due Dec. 30, 2011 based on the performance of the iShares Russell 2000 index exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
If the final fund share price is less than the initial share price, the payout at maturity will be par plus double the absolute value of the decline, subject to a maximum return of 17%.
If the final share price is greater than or equal to the initial price but less than the buffer level - 115% of the initial price - investors will receive par. Otherwise, investors will lose 1% for each 1% increase beyond the buffer.
RBC Capital Markets Corp. is the underwriter.
| Issuer: | Royal Bank of Canada
|
| Issue: | Buffered bearish enhanced return notes
|
| Underlying fund: | iShares Russell 2000 index ETF
|
| Amount: | $1.75 million
|
| Maturity: | Dec. 30, 2011
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par plus 200% of absolute value of fund decline, capped at 17%; par if final price is 100% to 115% of initial price; 1% loss for each 1% increase beyond buffer
|
| Initial price: | $63.53
|
| Buffer level: | $73.06, 115% of the initial price
|
| Pricing date: | June 24
|
| Settlement date: | June 29
|
| Underwriter: | RBC Capital Markets Corp.
|
| Fees: | 1.25%
|
| Cusip: | 78008KBF9
|
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