Published on 10/4/2019 in the Prospect News Structured Products Daily.
New Issue: RBC prices $1.57 million buffer booster notes linked to S&P 500, Dow
By Angela McDaniels
Tacoma, Wash., Oct. 4 – Royal Bank of Canada priced $1.57 million of 0% buffer booster notes due Oct. 1, 2025 linked to the lesser performing of the S&P 500 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
If the final level of the lesser-performing index is greater than its initial level and its percentage change exceeds 35%, the payout will be par plus the return of the lesser-performing index.
If the final level of the lesser-performing index is greater than or equal to its initial level but its percentage change does not exceed 35%, the payout at maturity will be par plus 35%.
If the final level of the lesser-performing index is less than its initial level but is not less than its buffer level, 80% of its initial level, then the payout will be par.
If the final level of the lesser-performing index is less than its buffer level, investors will lose 1% for every 1% that the lesser-performing index declines beyond 20%.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
|
| Issue: | Buffer booster notes
|
| Underlying indexes: | S&P 500 and Dow Jones industrial average
|
| Amount: | $1,571,000
|
| Maturity: | Oct. 1, 2025
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If final level of lesser-performing index is greater than initial level and its percentage change exceeds 35%, par plus lesser-performing index’s return; if final level of lesser-performing index is greater than or equal to initial level but percentage change does not exceed 35%, par plus 35%; if final level of lesser-performing index is less than initial level but is not less than buffer level, par; if final level of lesser-performing index is less than buffer level, 1% loss for every 1% that index declines beyond 20%
|
| Initial levels: | 2,977.62 for S&P 500 and 26,891.12 for Dow
|
| Buffer levels: | 2,382.10 for S&P 500 and 21,512.90 for Dow, or 80% of initial levels
|
| Pricing date: | Sept. 26
|
| Settlement date: | Sept. 30
|
| Underwriter: | RBC Capital Markets, LLC
|
| Fees: | 3.25%
|
| Cusip: | 78015KAT1
|
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