RBC plans bullish barrier booster notes linked to SPDR Dow ETF trust

By Toni Weeks

San Luis Obispo, Calif., Feb. 28 - Royal Bank of Canada plans to price 0% bullish barrier booster notes due March 29, 2017 linked to the SPDR Dow Jones Industrial Average exchange-traded fund trust, according to an FWP filing with the Securities and Exchange Commission.

If the fund return is positive but not greater than 25%, the payout at maturity will be par plus a fixed return of 25%.

If the fund return is greater than 25%, the payout at maturity will be par plus 115% to 135% of the percentage increase above 25% plus the 25% fixed return. The exact participation rate will be set at pricing.

Investors will receive par if the fund falls by up to 25% and will be fully exposed to losses if the shares fall below the 75% barrier level.

The notes (Cusip: 78008SA30) will price March 26 and settle March 28.

RBC Capital Markets, LLC is the underwriter.

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