Published on 6/1/2021 in the Prospect News Structured Products Daily.
New Issue: RBC sells $458,500 capped buffer gears on stock basket
By Emma Trincal
New York, June 1 – Royal Bank of Canada priced $458,500 of capped buffer gears due Nov. 30, 2022 linked to an equally weighted basket of stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of Alcoa Corp., ConocoPhillips, Deere & Co., Freeport-McMoRan Inc., FMC Corp., Barrick Gold Corp., Mosaic Co., Newmont Corp., Pioneer Natural Resources Co. and Steel Dynamics, Inc.
The payout at maturity will be par of $10 plus 2 times any basket gain, capped at par plus 27.8%.
If the basket finishes flat or falls by up to 10%, the payout will be par.
Otherwise, investors will lose 1% for every 1% that the basket declines beyond the 10% buffer.
UBS Financial Services Inc. and RBC Capital Markets, LLC are the agents.
| Issuer: | Royal Bank of Canada
|
| Issue: | Capped buffer gears
|
| Underlying stocks: | Alcoa Corp., ConocoPhillips, Deere & Co., Freeport-McMoRan Inc., FMC Corp., Barrick Gold Corp., Mosaic Co., Newmont Corp., Pioneer Natural Resources Co. and Steel Dynamics, Inc., equally weighted
|
| Amount: | $458,500
|
| Maturity: | Nov. 30, 2022
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | If basket return is greater than zero, par plus 2 times the basket return, capped at par plus 27.8%; par if the basket declines by 10% or less; 1% loss for every 1% decline beyond 10%
|
| Initial level: | $35.15 for Alcoa, $54.88 for ConocoPhillips, $360.69 for Deere & Co., $40.68 for Freeport-McMoRan Inc., $115.55 for FMC Corp., $24.58 for Barrick Gold Corp., $34.77 for Mosaic Co., $73.20 for Newmont Corp., $148.32 for Pioneer Natural Resources Co. and $60.18 for Steel Dynamics, Inc.
|
| Buffer level: | 90% of initial level
|
| Pricing date: | May 25
|
| Settlement date: | May 28
|
| Agents: | UBS Financial Services Inc. and RBC Capital Markets, LLC
|
| Fees: | 0%
|
| Cusip: | 78014U152
|
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