Published on 5/4/2023 in the Prospect News Structured Products Daily.
New Issue: RBC prices $3.8 million leveraged upside participation notes on S&P
By Wendy Van Sickle
Columbus, Ohio, May 4 – Royal Bank of Canada priced $3.8 million of 0% leveraged upside participation to a cap with a fixed percentage buffered downside – market-linked notes due May 4, 2026 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
If the index return is positive, the payout at maturity will be par plus 200% of the gain, subject to a maximum return of 28.05% of the principal amount.
If the index falls by up to 20%, the payout will be par.
If the index falls by more than 20%, investors will lose 1% for every 1% decline beyond the 20% buffer.
Wells Fargo Securities, LLC is the agent.
Issuer: | Royal Bank of Canada
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Issue: | Market-linked securities – leveraged upside participation to a cap with a fixed-percentage buffered downside
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Underlying index: | S&P 500 index
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Amount: | $3,803,000
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Maturity: | May 4, 2026
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | If the index return is positive, par plus 200% of the gain, subject to a cap of 28.05%; if the index falls by up to 20%, par; if the index falls by more than 20%, 1% loss for every 1% drop beyond 20%
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Initial level: | 4,135.35
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Threshold level: | 3,308.28, 80% of initial level
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Pricing date: | April 27
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Settlement date: | May 2
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Agent: | Wells Fargo Securities, LLC
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Fees: | 2.79%
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Cusip: | 78016HWK2
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