By Marisa Wong
Madison, Wis., July 10 – Royal Bank of Canada priced $6.25 million of 0% autocallable market-linked step up notes due July 28, 2017 linked to two indexes, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the Euro Stoxx 50 index with a weight of 85% and the MSCI Emerging Markets index with a weight of 15%.
The notes will be called at par plus an annualized call premium of 8% if the basket closes at or above its initial level on either annual call date.
If the basket finishes at or above the step-up value – 120.5% of the initial level – the payout at maturity will be par plus the basket return.
If the basket finishes below the step-up level but at or above the initial level, the payout will be par plus the step-up return of 20.5%.
Investors will receive par if the basket falls by up to 5% and will be exposed to losses beyond 5%.
BofA Merrill Lynch is the underwriter.
| Issuer: | Royal Bank of Canada
|
| Issue: | Autocallable market-linked step up notes
|
| Underlying indexes: | Euro Stoxx 50 index with a weight of 85% and MSCI Emerging Markets index with a weight of 15%
|
| Amount: | $6,245,400
|
| Maturity: | July 28, 2017
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| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | If basket finishes at or above 120.5% of initial level, par plus basket return; if basket finishes below step-up level but at or above initial level, par plus step-up return of 20.5%; par if basket falls by up to 5%; full exposure to losses beyond 5%
|
| Call: | At par plus an annualized call premium of 8% if basket closes at or above its initial level on July 10, 2015 or July 15, 2016
|
| Initial levels: | 3,184.38 for Euro Stoxx, 1,064.73 for MSCI EM
|
| Pricing date: | July 8
|
| Settlement date: | July 15
|
| Agent: | BofA Merrill Lynch
|
| Fees: | 2%
|
| Cusip: | 78011X787
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