RBC plans six-year barrier booster notes tied to S&P 500, Dow Jones

By Devika Patel

Knoxville, Tenn., July 8 – Royal Bank of Canada plans to price 0% barrier booster notes due July 31, 2025 linked to the lesser performing of the S&P 500 index and the Dow Jones Industrial average, according to an FWP filing with the Securities and Exchange Commission.

If the lesser-performing index gains by more than the booster coupon of 40% to 50%, the payout at maturity will be par plus the return of the lesser-performing index. If the lesser-performing index gains by up to the booster coupon, the payout will be par plus the booster coupon. The exact booster coupon will be set at pricing.

If the lesser-performing index falls by up to 40%, the payout will be par.

If the lesser-performing index finishes below its 60% barrier, investors will lose 1% for each 1% decline of the lesser-performing index from its initial level.

RBC Capital Markets, LLC is the agent.

The notes (Cusip: 78013XW38) will price on July 26 and settle on July 31.

© 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.