By William Gullotti
Buffalo, N.Y., March 9 – Royal Bank of Canada priced $14.5 million of 0% capped buffer notes due Jan. 20, 2028 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
If the index finishes greater than or equal to 165% of its initial level, the payout will be par plus 94%.
If the index finishes above 144% of its initial level but less than 165% of its initial level, the payout will be the sum of the percentage change and negative 44%, multiplied by 1.86, plus 54.94%, subject to a maximum payout of par plus 94%
If the index finishes above 120% of its initial level but less than 144% of its initial level, the payout will be the sum of the percentage change and negative 20%, multiplied by 1.4558, plus 20%.
If the index gains no more than 20%, the payout at maturity will be par plus 20%.
If the index finishes flat or declines up to 10%, the payout will be the sum of the percentage change and 10%, multiplied by two.
Otherwise, investors will lose 1% for every 1% decline of the index beyond 10%.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
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| Issue: | Capped buffer notes
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| Underlying index: | S&P 500 index
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| Amount: | $14.5 million
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| Maturity: | Jan. 20, 2028
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | If the index finishes greater than or equal to 165% of its initial level, par plus 94%; if the index finishes above 144% of its initial level but less than 165% of its initial level, sum of the percentage change and -44%, multiplied by 1.86, plus 54.94%, subject to a maximum payout of par plus 94%; if the index finishes above 120% of its initial level but less than 144% of its initial level, sum of the percentage change and -20%, multiplied by 1.4558 plus an additional 20%; if the index gains up to 20%, the payout at maturity will be par plus 20%; if the index finishes flat or declines up to 10%, the payout will be the sum of the percentage change and 10%, multiplied by two; otherwise, 1% loss for every 1% of index decline below 10%
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| Initial level: | Average of the closing levels from March 3 to March 15
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| Final level: | Average of the closing levels from Oct. 18, 2027 to Jan. 14, 2028
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| Pricing date: | March 4
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| Settlement date: | March 9
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 0.25%
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| Cusip: | 78016FFN9
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