RBC to price leveraged notes linked to SPDR S&P Regional Bank ETF

By Angela McDaniels

Tacoma, Wash., May 8 – Royal Bank of Canada plans to price 18- to 21-month 0% leveraged notes linked to the SPDR S&P Regional Banking exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

If the ETF return is positive, the payout at maturity will be par plus 300% of the ETF return, subject to a maximum settlement amount that is expected to be between $1,247.20 and $1,290.40 per $1,000 principal amount of the notes. If the ETF return is negative, investors will have one-to-one exposure to the decline.

The exact maturity date and maximum settlement amount will be set at pricing.

RBC Capital Markets, LLC is the underwriter.

The Cusip number is 78012KQ75.

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