RBC aims to price barrier enhanced return notes tied to biotech ETF

By Wendy Van Sickle

Columbus, Ohio, Jan. 6 – Royal Bank of Canada plans to price 0% barrier enhanced return notes due May 14, 2020 linked to the SPDR® S&P Biotech exchange-traded fund, according to an FWP filing with the Securities and Exchange Commission.

The payout at maturity will be par plus 150% of any ETF gain, up to a maximum return expected to be 87% to 94.5% which will be set at pricing.

Investors will receive par if the ETF falls by up to 20% and will lose 1% for each 1% decline beyond the 80% barrier level.

RBC Capital Markets, LLC is the underwriter.

The notes (Cusip: 78012KYM3) will price on Jan. 10 and settle on Jan. 13.

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