Published on 4/15/2021 in the Prospect News Structured Products Daily.
New Issue: RBC sells $6.95 million trigger step securities tied to index basket
By Wendy Van Sickle
Columbus, Ohio, April 15 – Royal Bank of Canada priced $6.95 million of 0% trigger step securities due March 31, 2026 linked to a basket of indexes, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the Euro Stoxx 50 index with a weight of 40%, the FTSE 100 index with a weight of 17.5%, the Nikkei 225 index with a weight of 25%, the Swiss Market index with a 10% weight and the S&P/ASX 200 index with a weight of 7.5%.
If the basket return is zero or positive, the payout at maturity will be par of $10 plus the greater of 37.75% and the basket return. Investors will receive par if the basket declines by 25% or less and will be fully exposed to the basket’s decline from its initial level if it declines beyond 25%.
UBS Financial Services Inc. and RBC Capital Markets, LLC are the agents.
Issuer: | Royal Bank of Canada
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Issue: | Trigger step securities
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Underlying indexes: | Euro Stoxx 50 index with a weight of 40%, the FTSE 100 index with a weight of 17.5%, the Nikkei 225 index with a weight of 25%, the Swiss Market index with a 10% weight and the S&P/ASX 200 index with a weight of 7.5%
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Amount: | $6,954,790
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Maturity: | March 31, 2026
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Coupon: | 0%
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Price: | Par of $10
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Payout at maturity: | If basket return is zero or positive, par plus greater of 37.75% and basket return; par if basket declines by 25% or less; otherwise, full exposure to decline from initial level
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Initial index level: | 3,882.87 for Stoxx, 29,384.52 for Nikkei, 6,736.17 for FTSE, 11,089.6 for Swiss, 6,799.493 for S&P/ASX
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Downside threshold: | 75% of initial basket level
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Pricing date: | March 29
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Settlement date: | March 31
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Agents: | UBS Financial Services Inc. and RBC Capital Markets, LLC
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Fees: | 3.5%
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Cusip: | 78014M721
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