New Issue: RBC sells $670,000 direct investment notes on small cap focus list

By Marisa Wong

Morgantown, W.Va., June 5 – Royal Bank of Canada priced $670,000 of direct investment notes due June 8, 2018 linked to the May 2017 RBC Capital Markets U.S. Equity Small Cap Focus List, according to a 424B2 filing with the Securities and Exchange Commission.

The list components are American Equity Investment Life Holding Co., AMC Entertainment Holdings Inc., Colony NorthStar, Inc., Criteo SA, Masonite International Corp., Five Below, Inc., InterXion Holding NV, Mueller Water Products, Inc., Proofpoint, Inc. and Western Alliance Bancorp. They are equally weighted.

Interest is payable quarterly. The amount of each interest payment, if any, will depend on the amount of dividends paid on each basket stock during the preceding quarter and will equal, for each $1,000 principal amount, 97.75% of the sum of the dividend amounts for each of the basket stocks.

The dividend amount for each stock equals (a) $1,000 divided by the initial price of the applicable stock multiplied by (b) the applicable component weighting multiplied by (c) 100% of the gross cash distributions (including ordinary and extraordinary dividends) per share declared by the applicable stock issuer where the date that the applicable stock has commenced trading ex-dividend on its primary U.S. securities exchange as to each relevant distribution occurs during the relevant interest calculation period.

For each $1,000 principal amount of notes, the payout at maturity will be the product of $977.50 and the percentage amount.

The percentage amount will equal (a) 100% plus (b) the sum of the weighted returns for the basket stocks. The payout will be less than par if the percentage amount is less than 102.3%.

RBC Capital Markets LLC is the underwriter.

Issuer:	Royal Bank of Canada
Issue:	Direct investment notes
Underlying companies:	American Equity Investment Life Holding Co. (Symbol: AEL), AMC Entertainment Holdings Inc. (Symbol: AMC), Colony NorthStar, Inc. (Symbol: CLNS), Criteo SA (Symbol: CRTO), Masonite International Corp. (Symbol: DOOR), Five Below, Inc. (Symbol: FIVE), InterXion Holding NV (Symbol: INXN), Mueller Water Products, Inc. (Symbol: MWA), Proofpoint, Inc. (Symbol: PFPT) and Western Alliance Bancorp (Symbol: WAL); equally weighted
Amount:	$670,000
Maturity:	June 8, 2018
Coupon:	97.75% of the sum of the dividend amounts for each of the basket stocks; payable quarterly
Price:	Par of $1,000
Payout at maturity:	$977.50 times the percentage amount, which is equal to (a) 100% plus (b) the sum of the weighted returns for the basket stocks; par if the percentage amount is less than 102.3%
Initial prices:	$24.92 for American Equity, $24.70 for AMC, $14.08 for Colony, $54.90 for Criteo, $75.40 for Masonite, $52.63 for Five Below, $44.34 for InterXion, $11.16 for Mueller, $89.42 for Proofpoint, $45.92 for Western Alliance
Pricing date:	May 26
Settlement date:	May 31
Agent:	RBC Capital Markets, LLC
Fees:	1.5%
Cusip:	78013GDY8

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