RBC to price direct investment notes linked to basket of 25 stocks

By Wendy Van Sickle

Columbus, Ohio, Aug. 25 – Royal Bank of Canada plans to price direct investment notes due Oct. 2, 2017 linked to a basket of 25 common equity securities, according to an FWP filing with the Securities and Exchange Commission.

The equally weighted basket is composed of the stocks of Alliance Data Systems Corp., Autodesk, Inc., Amazon.com, Inc., Activision Blizzard, Inc., Broadcom Ltd., Ball Corp., Bristol-Myers Squibb Co., Chubb Ltd., Centene Corp., salesforce.com, inc., Delphi Automatic plc, Facebook, Inc., Frontier Communications Corp., Huntington Bancshares Inc., KeyCorp., KLA-Tencor Corp., Kroger Co., Mylan NV, Netflix, Inc., Newell Brands Inc., Royal Caribbean Cruises Ltd., Signet Jewelers Ltd., Molson Coors Brewing Co., Dentsply Sirona Inc. and Xerox Corp.

Interest is payable quarterly. The amount of each interest payment, if any, will depend on the amount of dividends paid on each basket stock during the preceding quarter and will equal, for each $1,000 principal amount, 97.75% of the sum of the dividend amounts for each of the basket stocks.

The dividend amount for each stock equals (a) $1,000 divided by the initial price of the applicable stock multiplied by (b) the applicable component weighting multiplied by (c) 100% of the gross cash distributions (including ordinary and extraordinary dividends) per share declared by the applicable stock issuer where the date that the applicable stock has commenced trading ex-dividend on its primary U.S. securities exchange as to each relevant distribution occurs during the relevant interest calculation period.

For each $1,000 principal amount of notes, the payout at maturity will be the product of $977.50 and the percentage amount.

The percentage amount will equal an amount, expressed as a percentage, equal to (a) 100% plus (b) the sum of the weighted returns for the basket stocks. The payout will be less than par if the percentage amount is less than 102.3%.

RBC Capital Markets, LLC is the underwriter.

The notes will price Sept. 27.

The Cusip number is 78012KSV0.

© 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.