RBC plans trigger return optimization notes on energy stock basket

By Marisa Wong

Madison, Wis., Oct. 22 – Royal Bank of Canada plans to price 0% trigger return optimization securities due Oct. 31, 2016 linked to an energy-related basket of stocks, according to an FWP filing with the Securities and Exchange Commission.

The equally weighted basket includes Anadarko Petroleum Corp., Celanese Corp., Dominion Resources, Inc., Dow Chemical Co., Enterprise Products Partners LP, Halliburton Co., Marathon Oil Corp., Memorial Production Partners LP, Nucor Corp., Occidental Petroleum Corp., Regency Energy Partners LP, Schlumberger NV and Southwestern Energy Co.

The payout at maturity will be par plus double any gain in the basket, up to a maximum return of 16.5% to 20%. The exact maximum return will be set at pricing.

If the basket finishes at or above the 80% trigger level, the payout will be par.

Otherwise, investors will be fully exposed to the basket decline.

UBS Financial Services Inc. and RBC Capital Markets, LLC are the agents.

The notes will price on Oct. 28 and settle on Oct. 31.

The Cusip number is 78011Y595.

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