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Published on 1/4/2018 in the Prospect News Structured Products Daily.

New Issue: RBC sells $3.55 million capped gears linked to basket of six indexes

By Marisa Wong

Morgantown, W.Va., Jan. 4 – Royal Bank of Canada priced $3.55 million of 0% capped gears due Feb. 28, 2019 linked to a basket of indexes, according to a 424B2 filing with the Securities and Exchange Commission.

The basket contains the Euro Stoxx 50 index with a 40% weight, the FTSE 100 index with a 20% weight, the Nikkei 225 index with a 20% weight, the Swiss Market index with a 7.5% weight, the S&P/ASX 200 index with a 7.5% weight and the Hang Seng index with a 5% weight.

If the basket return is greater than zero, the payout at maturity will be par of $10 plus triple the basket return, subject to a maximum gain of 18.48%. If the basket return is negative, investors will be exposed to the basket’s decline.

UBS Financial Services Inc. and RBC Capital Markets, LLC are the agents.

Issuer:Royal Bank of Canada
Issue:Capped gears
Underlying indexes:Euro Stoxx 50 (40% weight), FTSE 100 (20% weight), Nikkei 225 (20% weight), Swiss Market (7.5% weight), S&P/ASX 200 (7.5% weight) and Hang Seng (5% weight)
Amount:$3,545,250
Maturity:Feb. 28, 2019
Coupon:0%
Price:Par of $10
Payout at maturity:If basket return is greater than zero, par plus three times basket return, subject to 18.48% maximum gain; if basket return is negative, exposure to decline
Pricing date:Dec. 27
Settlement date:Dec. 29
Agents:UBS Financial Services Inc. and RBC Capital Markets, LLC
Fees:2%
Cusip:78013F792

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