| |
RBC announces new series of Principal Protected S&P
500® index-linked notes
NEW YORK, November 14, 2007 — RBC today announced
that it will file a Preliminary Pricing Supplement on November
14, 2007, which relates to its Principal Protected Absolute
Return Notes Linked to the S&P 500® Index, due May
29, 2009 (the "Absolute Return Notes"). RBC Capital
Markets is the underwriter of the offering.
The Absolute Return Notes, which will be issued under RBC's
Senior Global Medium-Term Notes, Series C, Program, are 100%
principal protected and provide a return linked to the absolute
value of the performance (positive or negative) of the S&P
500® Index (the "underlying index") between
the pricing date, which will be November 20, 2007, and the
final valuation date, which will be May 26, 2009.
The Absolute Return Notes provide investors an opportunity
to gain market-neutral exposure to the performance of the
S&P 500® Index. This is accomplished by providing
a return linked to the movement (whether positive or negative)
of the underlying index, so long as the underlying index does
not close above the upper barrier or below the lower barrier
on any day up to and including the final valuation date.
The upper barrier is [122-126]% multiplied by the initial
underlying index level. The lower barrier is [74-78]% of the
final underlying index level. The return on the notes is capped
at [122-126]% multiplied by the principal amount. The upper
and lower barriers, and the cap on the return on the notes,
will be determined on the pricing date. If, during the term
of the note, the closing level of the underlying index is
greater than the upper barrier or less than the lower barrier,
then, at maturity, investors will not receive any interest
on the note but, rather, receive only the principal amount
invested. Otherwise, at maturity investors will receive their
principal plus a return equal to the absolute value of the
performance of the S&P 500® Index from the trade date
to, and including, the final valuation date. The Absolute
Return Notes will not pay a coupon.
This press release shall not constitute an offer to sell
or the solicitation of an offer to buy, nor shall there be
any sale of these securities in any state, province or other
jurisdiction in which such offer, solicitation or sale would
be unlawful prior to registration or qualification under the
securities laws of any such state, province or other jurisdiction.
The Preliminary Pricing Supplement relating to the Absolute
Return Notes, as well as the product prospectus supplement,
the base prospectus and the Medium-Term Notes prospectus supplement
which relate to it, are available at the website of the U.S.
Securities and Exchange Commission, www.sec.gov.
They are also available from RBC Capital Markets Corporation,
One Liberty Plaza, New York NY 10006, and RBC Dain Rauscher
Inc., a selling group member.
"Standard & Poor's®," "Standard &
Poor's 500," "S&P 500®" and "S&P"
are trademarks of The McGraw-Hill Companies, Inc. and have
been licensed for use by RBC. The notes have not been passed
on by S&P as to their legality or suitability. The notes
are not issued, endorsed, sold, or promoted by S&P. S&P
MAKES NO WARRANTIES AND BEARS NO LIABILITY WITH RESPECT TO
THE NOTES.
ABOUT RBC
Royal Bank of Canada (RY on TSX and NYSE) and its subsidiaries
operate under the master brand name of RBC. We are Canada's
largest bank as measured by assets and market capitalization
and one of North America's leading diversified financial services
companies. We provide personal and commercial banking, wealth
management services, insurance, corporate and investment banking
and transaction processing services on a global basis. Our
corporate support team enables business growth with expert
professional advice and state-of-the-art processes and technology.
We employ approximately 70,000 full- and part-time employees
who serve more than 15 million personal, business, public
sector and institutional clients through offices in North
America and 34 countries around the world.
- 30 -
For further information, please contact:
Kevin Foster, RBC Capital Markets, (212) 428-6902, kevin.foster@rbccm.com
|
|
