Published on 10/3/2011 in the Prospect News Structured Products Daily.
New Issue: RBC prices $2.9 million growth securities linked to four ETFs via Wells Fargo
By Angela McDaniels
Tacoma, Wash., Oct. 3 - Royal Bank of Canada priced $2.9 million of 0% growth securities with capped upside and fixed percentage buffered downside due April 4, 2016 linked to a basket of four exchange-traded funds, according to a 424B2 filing with the Securities and Exchange Commission.
Wells Fargo Securities, LLC is the underwriter.
The basket includes the SPDR S&P 500 ETF trust with a 45% weight, the iShares Russell 2000 index fund with a 20% weight, the iShares MSCI EAFE index fund with a 20% weight and the iShares MSCI Emerging Markets index fund with a 15% weight.
The payout at maturity will be par plus 1.5 times any gain in the basket, up to a maximum payout of $1,520 per $1,000 principal amount of notes. Investors will receive par if the basket falls by 15% or less and will lose 1% for every 1% that it declines beyond 15%.
| Issuer: | Royal Bank of Canada
|
| Issue: | Growth securities with capped upside and fixed percentage buffered downside
|
| Underlying ETFs: | SPDR S&P 500 ETF trust (45% weight), iShares Russell 2000 index fund (20% weight), iShares MSCI EAFE index fund (20% weight) and iShares MSCI Emerging Markets index fund (15% weight)
|
| Amount: | $2,895,000
|
| Maturity: | April 4, 2016
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| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par plus 1.5 times any basket gain, up to maximum payout of $1,520 per $1,000 principal amount; par if basket falls by 15% or less; 1% loss for every 1% that basket declines beyond 15%
|
| Initial share prices: | $116.02 for SPDR; $66.33 for iShares Russell 2000; $49.46 for iShares MSCI EAFE; $39.95 for iShares MSCI Emerging Markets
|
| Pricing date: | Sept. 29
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| Settlement date: | Oct. 4
|
| Underwriter: | Wells Fargo Securities, LLC
|
| Fees: | 2.5%
|
| Cusip: | 78008TRX4
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