By Wendy Van Sickle
Columbus, Ohio, June 10 – Royal Bank of Canada priced $3.26 million of 0% capped trigger gears due May 18, 2023 linked to an equally-weighted basket of funds, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the Financial Select Sector SPDR fund with a 25% weight, the Consumer Discretionary Select Sector SPDR fund with a 25% weight, the Energy Select Sector SPDR fund with a 25% weight and the Industrial Select Sector SPDR fund with a 25% weight.
If the basket return is greater than zero, the payout at maturity will be par of $10 plus double the basket return, capped at par plus 27%.
Investors will receive par if the basket declines by 20% or less and be fully exposed to the basket’s decline from its initial level if it declines by more than 20%.
RBC Capital Markets, LLC and UBS Financial Services Inc. are the agents.
| Issuer: | Royal Bank of Canada
|
| Issue: | Capped trigger gears
|
| Underlying basket: | Financial Select Sector SPDR fund (25% weight), Consumer Discretionary Select Sector SPDR fund (25% weight), Energy Select Sector SPDR fund (25% weight) and Industrial Select Sector SPDR fund (25% weight)
|
| Amount: | $3,258,290
|
| Maturity: | May 18, 2023
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| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus double any basket gain, capped at par plus 27%; par if basket declines by 20% or less; full exposure to basket’s decline from its initial level if it declines by more than 20%
|
| Initial basket level: | $37.88 for Financial, $170.74 for Consumer Discretionary, $53.49 for Energy, $104.73 for Industrial
|
| Downside threshold level: | 80% of initial level
|
| Pricing date: | May 14
|
| Settlement date: | May 19
|
| Agents: | RBC Capital Markets, LLC and UBS Financial Services Inc.
|
| Fees: | 0%
|
| Cusip: | 78014U111
|
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