Published on 6/12/2012 in the Prospect News Structured Products Daily.
New Issue: RBC prices $4 million absolute return barrier notes linked to S&P 500
By Toni Weeks
San Diego, June 12 - Royal Bank of Canada priced $4 million of 0% absolute return barrier notes due June 12, 2014 linked to the S&P 500 index, according to a 424B2 with the Securities and Exchange Commission.
Investors will share in any index gains, subject to a maximum return of 23.5%.
If the index finishes above 76.5% of the initial level and below the initial level, the payout at maturity will be par plus the absolute value of the index decline.
If the index finishes below the barrier level, investors will share in losses.
RBC Capital Markets, LLC is the agent.
Issuer: | Royal Bank of Canada
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Issue: | Absolute return barrier notes
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Underlying index: | S&P 500
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Amount: | $4 million
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Maturity: | June 12, 2014
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | If final index level is greater than initial index level, par plus index return, subject to maximum return of 23.5%; if index finishes above 76.5% of initial level and below initial level, par plus absolute value of index decline; full exposure to losses if index finishes below barrier level
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Barrier event: | Index closes below barrier level during life of notes
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Initial index level: | 1,325.66
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Barrier level: | 1,014.13, 76.5% of initial index level
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Pricing date: | June 8
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Settlement date: | June 13
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Underwriter: | RBC Capital Markets, LLC
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Fees: | 2%, used for selling concessions
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Cusip: | 78008SBD7
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