Royal Bank of Canada to price 0% bearish notes linked to homebuilders

By Angela McDaniels

Seattle, April 12 - Royal Bank of Canada plans to price an offering of 0% bearish buffered equity investment notes due Oct. 30, 2008 linked to a basket of homebuilders' stocks, according to a 424B5 filing with the Securities and Exchange Commission.

The basket will include equal weights of California Coastal Communities, Inc., KB Home, Lennar Corp., Levitt Corp., Meritage Homes Corp., M/I Homes, Inc. and Standard Pacific Corp.

At maturity, investors will receive par plus 1% for each 1% decline in the basket, up to a maximum gain of 50%.

If the basket increases by 20% or less, the payout will be par. Investors will lose 1% for each 1% the basket advances beyond 20%.

The notes will price on April 25 and settle on April 30.

RBC Capital Markets Corp. will be the agent.

© 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.