Published on 3/2/2021 in the Prospect News Structured Products Daily.
New Issue: RBC prices $1.36 million capped buffer gears linked to index basket
By Wendy Van Sickle
Columbus, Ohio, March 2 – Royal Bank of Canada priced $1.36 million of 0% capped buffer gears due Feb.15, 2023 linked to a basket of indexes, according to a 424B2 filing with the Securities and Exchange Commission.
The basket includes the Euro Stoxx 50 index with a 40% weight, the Nikkei 225 index with a 25% weight, the FTSE 100 index with a 17.5% weight, the Swiss Market index with a 10% weight and the S&P/ASX 200 index with a 7.5% weight.
If the basket return is greater than zero, the payout at maturity will be par of $10 plus two times the basket return, subject to a maximum return of 13.6%. Investors will receive par if the basket declines by 10% or less and will 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 basket: | Euro Stoxx 50 (40% weight), Nikkei 225 (25% weight), FTSE 100 (17.5% weight), Swiss Market (10% weight), S&P/ASX 200 (7.5% weight)
|
| Amount: | $1,360,600
|
| Maturity: | Feb. 15, 2023
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | If basket return is greater than zero, par plus two times basket return, subject to maximum return of 13.6%; par if basket declines by 10% or less; 1% loss for every 1% that basket declines beyond 10%
|
| Initial levels: | 3,695.61 for Stoxx, 29,520.07 for Nikkei, 6,589.79 for FTSE, 6,806.741 for S&P/ASX, 10,880.37 for Swiss
|
| Buffer level: | 90% of initial basket level
|
| Pricing date: | Feb. 12
|
| Settlement date: | Feb. 17
|
| Agents: | UBS Financial Services Inc. and RBC Capital Markets, LLC
|
| Fees: | 2%
|
| Cusip: | 78014M630
|
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