New Issue: RBC sells $1.36 million capped buffer gears linked to ETF basket

By Kiku Steinfeld

Chicago, May 24 – Royal Bank of Canada priced $1.36 million of 0% capped buffer gears due Oct. 19, 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 double the basket return, capped at par plus 22.75%. Investors will receive par if the basket declines by 10% or less and lose 1% for every 1% that the basket declines beyond 10%.

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

Issuer:	Royal Bank of Canada
Issue:	Capped buffer gears
Underlying funds:	Energy Select Sector SPDR Fund, Financial Select Sector SPDR Fund; equal weights
Amount:	$1,364,500
Maturity:	Oct. 19, 2023
Coupon:	0%
Price:	Par of $10
Payout at maturity:	If the basket return is greater than zero, par plus two times the basket return, capped at par plus 22.75%; par if the basket declines by 10% or less; 1% loss for every 1% decline beyond 10%
Initial levels:	$57.33 for Energy, $39.51 for Financial
Downside threshold:	90% of initial level
Pricing date:	Oct. 15, 2021
Settlement date:	Oct. 20, 2021
Agents:	UBS Financial Services Inc. and RBC Capital Markets, LLC
Fees:	2%
Cusip:	78014U574

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