New Issue: RBC sells $3.34 million capped gears linked to ETF basket

By William Gullotti

Buffalo, N.Y., Dec. 20 – Royal Bank of Canada priced $3.34 million of 0% capped gears due Feb. 21, 2023 linked to an equally-weighted ETF basket, 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.

If the basket return is greater than zero, the payout at maturity will be par of $10 plus triple the basket return, capped at par plus 26.4%. Otherwise, investors will lose 1% for every 1% that the basket declines from its initial level.

UBS Financial Services Inc. and RBC Capital Markets, LLC 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:	$3,342,000
Maturity:	Feb. 21, 2023
Coupon:	0%
Price:	Par of $10
Payout at maturity:	If the basket return is greater than zero, par plus three times the basket return, capped at par plus 26.4%; otherwise, 1% loss for every 1% decline from initial level
Initial levels:	$55.15 for Energy, $38.97 for Financial
Pricing date:	Dec. 15
Settlement date:	Dec. 20
Agents:	UBS Financial Services Inc. and RBC Capital Markets, LLC
Fees:	2%
Cusip:	78014U814

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