RBC plans direct investment notes tied to February Top Picks List

By Marisa Wong

Morgantown, W.Va., Feb. 23 – Royal Bank of Canada plans to price direct investment notes due March 8, 2018 linked to the February 2017 RBC Capital Markets U.S. Equity Top Picks List, according to an FWP filing with the Securities and Exchange Commission.

The list includes equal weights of Air Lease Corp., Amphenol Corp., Aramark, Broadcom Ltd., Brookfield Asset Management Inc., Boston Properties, Inc., Discover Financial Services, Dollar Tree, Inc., Dow Chemical Co., Interpublic Group of Cos., Inc., Louisiana-Pacific Corp., Marathon Petroleum Corp., Microsemi Corp., Newell Brands Inc., PNC Financial Services Group. Inc., ServiceNow, Inc. and Whirlpool Corp.

A top pick represents an RBC analyst’s best idea in the sector, which is expected to provide significant absolute total return over 12 months with a favorable risk-reward ratio.

Interest is payable quarterly. The amount of each interest payment, if any, will depend on the amount of dividends paid on each basket stock during the preceding quarter and will equal, for each $1,000 principal amount, 97.75% of the sum of the dividend amounts for each of the basket stocks.

The dividend amount for each stock equals (a) $1,000 divided by the initial price of the applicable stock multiplied by (b) the applicable component weighting multiplied by (c) 100% of the gross cash distributions (including ordinary and extraordinary dividends) per share declared by the applicable stock issuer where the date that the applicable stock has commenced trading ex-dividend on its primary U.S. securities exchange as to each relevant distribution occurs during the relevant interest calculation period.

For each $1,000 principal amount of notes, the payout at maturity will be the product of $977.50 and the percentage amount.

The percentage amount will equal (a) 100% plus (b) the sum of the weighted returns for the basket stocks. The payout will be less than par if the percentage amount is less than 102.3%.

RBC Capital Markets, LLC is the underwriter.

The notes will price on Feb. 24.

The Cusip number is 78012KZU4.

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