Published on 4/26/2018 in the Prospect News Structured Products Daily.
New Issue: RBC sells $10 million market-linked step-up notes on index basket
By Marisa Wong
Morgantown, W.Va., April 26 – Royal Bank of Canada priced $10 million of 0% market-linked step-up notes due April 23, 2020 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 an initial weight of 40%, the FTSE 100 index with an initial weight of 20%, the Nikkei Stock Average index with an initial weight of 20%, the Swiss Market index with an initial weight of 7.5%, the S&P/ASX 200 index with an initial weight of 7.5% and the Hang Seng index with an initial weight of 5%.
If the basket finishes above its step-up level – 130.2% of the initial level – the payout at maturity will be par plus the gain.
If the basket gains by up to the step-up level, the payout will be par plus the step-up return of 30.2%.
Investors will be exposed to any losses.
BofA Merrill Lynch is the agent.
| Issuer: | Royal Bank of Canada
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| Issue: | Market-linked step-up notes
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| Underlying basket: | Euro Stoxx 50 index with an initial weight of 40%, FTSE 100 index with an initial weight of 20%, Nikkei Stock Average index with an initial weight of 20%, Swiss Market index with an initial weight of 7.5%, S&P/ASX 200 index with an initial weight of 7.5% and Hang Seng index with an initial weight of 5%
|
| Amount: | $10 million
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| Maturity: | April 23, 2020
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| Coupon: | 0%
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| Price: | Par
|
| Payout at maturity: | If the basket finishes above its 130.2% step-up level, par plus the gain; if the basket gains by up to the step-up level, par plus 30.2%; full exposure to any losses
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| Initial levels: | 3,438.78 for Euro Stoxx, 7,266.75 for FTSE, 21,794.32 for Nikkei, 8,755.57 for Swiss, 5,856.969 for S&P/ASX, 30,728.74 for Hang Seng
|
| Pricing date: | April 10
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| Settlement date: | April 17
|
| Agent: | BofA Merrill Lynch
|
| Fees: | 1.5%
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| Cusip: | 78014F734
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