Published on 10/16/2019 in the Prospect News Structured Products Daily.
New Issue: RBC prices $1.73 million capped buffered gears on basket of indexes
By Kiku Steinfeld
Chicago, Oct. 16 – Royal Bank of Canada priced $1.73 million of 0% capped buffer gears due Sept. 30, 2021 linked to a basket of indexes, according to a 424B2 filing with the Securities and Exchange Commission.
The basket components are 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.
The payout at maturity will be par of $10 plus twice any basket gain, subject to a maximum return of 29%. If the lesser-performing index finishes flat or falls by up to 10%, the payout will be par. Investors will be exposed to any losses of the lesser-performing index beyond 10%.
UBS Financial Services Inc. and RBC Capital Markets, LLC are the agents.
| Issuer: | Royal Bank of Canada
|
| Issue: | Capped buffer gears
|
| Basket components: | Euro Stoxx 50 (40% weight), FTSE 100 (20% weight), Nikkei Stock Average (20% weight), Swiss Market (7.5% weight), S&P/ASX 200 (7.5% weight) and Hang Seng (5% weight)
|
| Amount: | $1,726,300
|
| Maturity: | Sept. 30, 2021
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus 2 times any gain of basket, subject to a maximum return of 29%; par if basket falls by up to 10%; exposure to losses beyond 10%
|
| Initial index levels: | 3,532.18 for Stoxx, 7,351.08 for FTSE, 22,048.24 for Nikkei, 10,010.71 for Swiss, 6,677.581 for S&P/ASX, 26,041.93 for Hang Seng
|
| Pricing date: | Sept. 26
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| Settlement date: | Sept. 30
|
| Agents: | UBS Financial Services Inc. and RBC Capital Markets, LLC
|
| Fees: | 2%
|
| Cusip: | 78014J439
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