Published on 11/30/2018 in the Prospect News Structured Products Daily.
New Issue: RBC sells $4.46 million trigger absolute return step notes on basket
By Sarah Lizee
Olympia, Wash., Nov. 30 – Royal Bank of Canada priced $4.46 million of 0% trigger absolute return step securities due Nov. 30, 2023 linked to a basket of six 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 225 index with a 20% weight, the Swiss Market index with a 7.5% weight, the S&P/ASX 200 index with an 7.5% weight and the Hang Seng index with a 5% weight.
If the final basket level is greater than or equal to the initial level, the payout at maturity will be par of $10 plus the greater of the step return and the basket return. The step return is 52.5%.
If the final basket level is less than the initial level but greater than or equal to the downside threshold level, 70% of the initial level, the payout will be par plus the absolute value of the basket return.
If the final level is less than the downside threshold level, investors will lose 1% for every 1% that the final level is less than the initial level.
RBC Capital Markets Corp. and UBS Financial Services Inc. are the agents.
| Issuer: | Royal Bank of Canada
|
| Issue: | Trigger absolute return step securities
|
| Underlying basket: | Euro Stoxx 50 (40% weight), FTSE 100 index (20% weight), Nikkei 225 index (20% weight), Swiss Market index (7.5% weight), S&P/ASX 200 index (7.5% weight) and Hang Seng index (5% weight)
|
| Amount: | $4,459,300
|
| Maturity: | Nov. 30, 2023
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | If each index gains, par plus greater of 52.5% and index return; if index falls by up to 30%, par plus absolute return; otherwise, 1% loss per 1% decline
|
| Initial index level: | 3,168.29 for Stoxx, 7,004.52 for FTSE, 22,177.02 for Nikkei, 8,894.58 for Swiss Market, 5,725.078 for S&P/ASX and 26,682.56 for Hang Seng
|
| Downside thresholds: | 70% of initial levels
|
| Pricing date: | Nov. 28
|
| Settlement date: | Nov. 30
|
| Agents: | UBS Financial Services Inc. and RBC Capital Markets Corp.
|
| Fees: | 3.5%
|
| Cusip: | 78014G765
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
