New Issue: RBC sells $430,000 of 4.2% callable barrier notes on stock basket

By Wendy Van Sickle

Columbus, Ohio, Nov. 18 – Royal Bank of Canada priced $430,000 of 4.2% issuer callable barrier notes due Nov. 3, 2022 linked to an equally weighted basket of the common stocks of Bank of America Corp., Citigroup Inc., Goldman Sachs Group, Inc. and Morgan Stanley, according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

The notes will callable quarterly at par.

If the notes are not called, the payout at maturity will be par plus any gain in the basket. If the basket falls by up to 45%, the payout will be par. Otherwise, investors will lose 1% for each 1% decline of the basket from its initial level.

RBC Capital Markets Corp. is the agent.

Issuer:	Royal Bank of Canada
Issue:	Issuer callable barrier notes
Underlying basket:	Bank of America Corp., Citigroup Inc., Goldman Sachs Group, Inc. and Morgan Stanley
Amount:	$430,000
Maturity:	Nov. 3, 2022
Coupon:	4.2%, payable monthly
Price:	Par
Payout at maturity:	Par plus any gain in basket; par if basket falls by up to 45%; full exposure to loss if basket falls by more than 45%
Call option:	At par quarterly
Initial prices:	$23.70 for BofA, $41.42 for Citi, $189.04 for Goldman, $48.15 for Morgan Stanley
Trigger level:	55% of initial level
Pricing date:	Oct. 30
Settlement date:	Nov. 4
Agent:	RBC Capital Markets Corp.
Fees:	0.9%
Cusip:	78016EJP3

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