New Issue: RBC prices $12.71 million capped gears linked to basket of two ETFs

By Wendy Van Sickle

Columbus, Ohio, July 30 – Royal Bank of Canada priced $12.71 million of 0% capped gears due Sept. 30, 2022 linked to a basket of exchange-traded funds, according to a 424B2 filing with the Securities and Exchange Commission.

The basket consists of the Energy Select Sector SPDR fund and the Financial Select Sector SPDR fund, each with a 50% weight.

The payout at maturity will be par of $10 plus triple any basket gain, up to a maximum return of 23%.

Investors will be exposed to any losses.

RBC Capital Markets, LLC and UBS Financial Services Inc. are the agents.

Issuer:	Royal Bank of Canada
Issue:	Capped gears
Underlying funds:	Energy Select Sector SPDR fund, Financial Select Sector SPDR fund, equal weights
Amount:	$12,707,000
Maturity:	Sept. 30, 2022
Coupon:	0%
Price:	Par of $10
Payout at maturity:	Par plus triple any basket gain, capped at 23%; 1% loss per 1% decline
Initial levels:	$49.26 for Energy, $36.46 for Financial
Pricing date:	July 27
Settlement date:	July 30
Underwriters:	RBC Capital Markets, LLC and UBS Financial Services Inc.
Fees:	2%
Cusip:	78014U400

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