Published on 4/3/2023 in the Prospect News Structured Products Daily.
New Issue: RBC prices $6.17 million barrier absolute enhanced return notes linked to S&P 500
By William Gullotti
Buffalo, N.Y., April 3 – Royal Bank of Canada priced $6.17 million of barrier absolute enhanced return notes due March 29, 2028 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
If the index finishes at or above its initial level, the payout at maturity will be par plus 150% of the index return, subject to a maximum return of par plus 79%.
If the index declines up to the barrier level, 75% of the initial index level, the payout will be par plus the absolute value of the index return.
Otherwise, investors will lose 1% for every 1% decline of the index from its initial level.
RBC Capital Markets LLC is the underwriter.
Issuer: | Royal Bank of Canada
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Issue: | Barrier absolute enhanced return notes
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Underlying index: | S&P 500 index
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Amount: | $6,168,000
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Maturity: | March 29, 2028
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | If index finishes at or above its initial level, par plus 150% of the index return, capped at par plus 79%; if index declines no more than 25%, par plus absolute value of index return; otherwise, full exposure to the index’s decline from its initial level
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Initial index level: | 3,970.99
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Barrier level: | 2,978.24; 75% of initial level
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Pricing date: | March 24
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Settlement date: | March 29
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Underwriter: | RBC Capital Markets LLC
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Fees: | 3%
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Cusip: | 78016HVK3
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