Published on 10/31/2014 in the Prospect News Structured Products Daily.
New Issue: RBC prices $1.27 million trigger return optimization notes on 13 stocks
By Susanna Moon
Chicago, Oct. 31 – Royal Bank of Canada priced $1.27 million of 0% trigger return optimization securities due Oct. 31, 2016 linked to a basket of 13 equally weighted common stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The underlying companies are Anadarko Petroleum Corp., Celanese Corp., Dominion Resources, Inc., Dow Chemical Co., Enterprise Products Partners LP, Halliburton Co., Marathon Oil Corp., Memorial Production Partners LP, Nucor Corp., Occidental Petroleum Corp., Regency Energy Partners LP, Schlumberger NV and Southwestern Energy Co.
The payout at maturity will be par plus double any basket gain, up to a maximum return of 18.8%.
If the basket finishes at or above the 80% trigger level, the payout will be par.
Otherwise, investors will be fully exposed to any losses.
RBC Capital Markets, LLC is the underwriter with UBS Financial Services Inc. as dealer.
| Issuer: | Royal Bank of Canada
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| Issue: | Trigger return optimization securities
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| Underlying basket: | Anadarko Petroleum Corp., Celanese Corp., Dominion Resources, Inc., Dow Chemical Co., Enterprise Products Partners LP, Halliburton Co., Marathon Oil Corp., Memorial Production Partners LP, Nucor Corp., Occidental Petroleum Corp., Regency Energy Partners LP, Schlumberger NV and Southwestern Energy Co., equally weighted
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| Amount: | $1,265,800
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| Maturity: | Oct. 31, 2016
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | Par plus 200% of any basket gain, capped at 18.8%; par if basket falls by up to 20%; full exposure to any losses if basket finishes trigger level
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| Trigger level: | 80% of initial level
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| Pricing date: | Oct. 28
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| Settlement date: | Oct. 31
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| Underwriter: | RBC Capital Markets, LLC with UBS Financial Services Inc. as dealer
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| Fees: | 2%
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| Cusip: | 78011Y595
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