New Issue: RBC prices $1.41 million barrier return notes linked to a basket of three SPDR funds

By William Gullotti

Buffalo, N.Y., June 22 – Royal Bank of Canada priced $1.41 million of 0% barrier return notes due May 30, 2023 linked to an equally-weighted basket consisting of the Materials Select Sector SPDR Fund, the Energy Select Sector SPDR Fund and the Financial Select Sector SPDR Fund, according to a 424B2 filing with the Securities and Exchange Commission.

If the basket return is positive, the payout at maturity will be par plus the return, capped at 27%.

If the basket falls by up to 20%, the payout will be par.

If the basket falls by more than 20%, investors will lose 1% for every 1% that the basket declines from its initial level.

RBC Capital Markets LLC is the underwriter.

Issuer:	Royal Bank of Canada
Issue:	Barrier return notes
Underlying basket:	Materials Select Sector SPDR Fund, Energy Select Sector SPDR Fund, Financial Select Sector SPDR Fund
Amount:	$1,405,000
Maturity:	May 30, 2023
Coupon:	0%
Price:	Par
Payout at maturity:	If the basket return is positive, par plus the return, capped at 27%; if the basket falls by up to 20%, par; if the basket falls by more than 20%, 1% loss for every 1% that the basket declines from its initial level
Initial levels:	$87.37 for Materials, $52.68 for Energy, $37.76 for Financial
Barrier level:	80% of initial level
Pricing date:	May 24
Settlement date:	May 27
Agent:	RBC Capital Markets, LLC
Fees:	2.25%
Cusip:	78016EU88

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