New Issue: RBC prices $8.13 million dual directional participation securities linked to S&P 500

By Sarah Lizee

Olympia, Wash., Dec. 24 – Royal Bank of Canada priced $8.13 million of 0% dual directional participation securities due June 10, 2021 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 index return, capped at par plus 9.4%.

If the index falls but finishes at or above the trigger level, 80% of the initial index level, the payout will be par plus the absolute value of the index return.

If the index finishes below the trigger level, investors will lose 1% for every 1% that the index declines from its initial level.

RBC Capital Markets, LLC is the agent. Distribution is through Morgan Stanley Wealth Management.

Issuer:	Royal Bank of Canada
Issue:	Dual directional participation securities
Underlying index:	S&P 500
Amount:	$8,127,500
Maturity:	June 10, 2021
Coupon:	0%
Price:	Par of $10
Payout at maturity:	If the index finishes at or above its initial level, par plus index return, capped at par plus 9.4%; if the index falls but finishes at or above the trigger level, par plus the absolute value of the index return; if the index finishes below the trigger level, 1% loss for every 1% that the index declines from its initial level
Initial index level:	3,145.91
Trigger level:	2,516.73, 80% of initial level
Pricing date:	Dec. 6
Settlement date:	Dec. 11
Agent:	RBC Capital Markets, LLC
Distribution:	Morgan Stanley Wealth Management
Fees:	2%
Cusip:	78014J876

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