Published on 7/23/2019 in the Prospect News Structured Products Daily.
New Issue: RBC prices $3.25 million capped trigger gears on index basket
By Wendy Van Sickle
Columbus, Ohio, July 23 – Royal Bank of Canada priced $3.25 million of 0% capped trigger gears due July 23, 2024 linked to an unequally-weighted 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 40% weight, the FTSE 100 index with a 20% weight, the Nikkei Stock Average 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 3.61 times the basket return.
Investors will receive par if the basket declines by 25% or less and be fully exposed to the basket’s decline from its initial level if it declines by 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: | Capped trigger gears
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| Underlying basket: | Euro Stoxx 50 index (40% weight), FTSE 100 index (20% weight), Nikkei Stock Average index (20% weight), Swiss Market index (7.5% weight), S&P/ASX 200 index (7.5% weight) and Hang Seng index (5% weight)
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| Amount: | $3.25 million
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| Maturity: | July 23, 2024
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | Par plus 3.61 times any basket gain; par if basket declines by 25% or less; full exposure to basket’s decline from its initial level if it declines by more than 25%
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| Initial levels: | 3,482.83 for Stoxx, 7,493.09 for FTSE, 21,046.24 for Nikkei, 10,010.15 for Swiss, 6,449.115 for S&P/ASX and 28,461.66 for Hang Seng
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| Pricing date: | July 18
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| Settlement date: | July 23
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| Underwriter: | RBC Capital Markets, LLC, UBS Financial Services Inc.
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| Fees: | 1.25%
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| Cusip: | 78014J256
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