Published on 12/21/2023 in the Prospect News Structured Products Daily.
New Issue: RBC prices $9.34 million trigger step securities tied to basket of five indexes
By Wendy Van Sickle
Columbus, Ohio, Dec. 21 – Royal Bank of Canada priced $9.34 million of 0% trigger step securities due Dec. 20, 2028 linked to a weighted basket of indexes, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the S&P 500 index with a 50% weight, the S&P MidCap 400 index with a 20% weight, the Russell 2000 index with a 10% weight, the Euro Stoxx 50 index with an 8% weight, the Nikkei 225 index with a 5% weight, the FTSE 100 index with a 3.5% weight, the Swiss Market index with a 2% weight and the S&P/ASX 200 index with a 1.5% weight.
If the basket return is zero or positive, the payout at maturity will be par of $10 plus the greater of 40% and the basket return.
Investors will receive par if the basket declines by 25% or less and will lose 1% for each 1% decline from its initial level if the basket falls more than 25%.
RBC Capital Markets, LLC and UBS Financial Services Inc. are the agents.
| Issuer: | Royal Bank of Canada
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| Issue: | Trigger step securities
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| Underlying index: | S&P 500 index (50% weight), S&P MidCap 400 index (20% weight), Russell 2000 index (10% weight), Euro Stoxx 50 index (8% weight), Nikkei 225 index (5% weight), FTSE 100 index (3.5% weight), Swiss Market index (2% weight), S&P/ASX 200 index (1.5% weight)
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| Amount: | $9,343,720
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| Maturity: | Dec. 20, 2028
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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 40% and basket return; par if basket declines by up to 25%; 1% loss for each 1% decline if basket falls beyond 25%
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| Initial levels: | 4,719.19 for S&P 500, 2,745.6 for S&P MidCap, 1,985.127 for Russell, 4,549.44 for Stoxx, 32,970.55 for Nikkei, 7,576.36 for FTSE, 11,191.89 for Swiss Market, 7,442.691 for S&P/ASX 200
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| Downside threshold: | 75% of initial level
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| Pricing date: | Dec. 15
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| Settlement date: | Dec. 20
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| Agents: | RBC Capital Markets, LLC and UBS Financial Services Inc.
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| Fees: | 3.5%
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| Cusip: | 78016R223
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