RBC plans PLUS due 2018 with leverage, cap tied to index, fund basket

By Susanna Moon

Chicago, Jan. 12 – Royal Bank of Canada plans to price 0% Performance Leveraged Upside Securities due March 2, 2018 linked to an unequally weighted basket containing two indexes and four exchange-traded funds, according to an FWP filing with the Securities and Exchange Commission.

The basket consists of the S&P 500 index with a 50% weight, the Russell 2000 index with a 20% weight and the Euro Stoxx 50 index with a 15% weight and the WisdomTree Japan Hedged Equity fund with a 15% weight.

The payout will be par triple any basket gain, up to a maximum return of 12.75%.

Investors will be exposed to any losses.

RBC Capital Markets LLC is the agent with Morgan Stanley Wealth Management handling distribution.

The notes will price on Jan. 27 and settle on Feb. 1.

The Cusip number is 78014E273.

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