New Issue: RBC prices $2.75 million 8.01% barrier income notes linked to two SPDR sector ETFs

By William Gullotti

Buffalo, N.Y., Oct. 12 – Royal Bank of Canada priced $2.75 million of 8.01% barrier income notes due March 11, 2025 linked to the lesser performing of the Financial Select Sector SPDR Fund and the Industrial Select Sector SPDR Fund, according to a 424B2 filing with the Securities and Exchange Commission.

Coupon will be payable monthly.

Investors will receive par if the lesser-performing ETF declines by 40% or less. Otherwise, investors will lose 1% for every 1% that the lesser-performing ETF declines from initial level.

RBC Capital Markets, LLC is the agent.

Issuer:	Royal Bank of Canada
Issue:	Barrier income notes
Underlying funds:	Industrial Select Sector SPDR Fund, Financial Select Sector SPDR Fund
Amount:	$2,751,000
Maturity:	March 11, 2025
Coupon:	8.01% per year, payable monthly
Price:	Par
Payout at maturity:	Par if each ETF finishes at or above barrier level; otherwise, full exposure to losses of worst performer
Initial levels:	$86.82 for Industrial, $31.64 for Financial
Barrier levels:	$52.09 for Industrial, $18.98 for Financial; 60% of initial levels
Strike date:	Oct. 6
Pricing date:	Oct. 7
Settlement date:	Oct. 13
Agent:	RBC Capital Markets, LLC
Fees:	0.48%
Cusip:	78016FYK4

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