Published on 7/28/2020 in the Prospect News Structured Products Daily.
New Issue: RBC prices $8.58 million PLUS on basket of two indexes, five ETFs
By Kiku Steinfeld
Chicago, July 28 – Royal Bank of Canada priced $8.58 million of 0% Performance Leveraged Upside Securities due Dec. 30, 2020 linked to a basket made up of two indexes and five exchange-traded funds, according to a 424B2 filing with the Securities and Exchange Commission.
The basket includes the Russell 200 index with a 25% weight, the VanEck Vectors Gold Miners ETF, the SPDR S&P Regional Banking ETF and the Euro Stoxx 50 index, each with a 15% weight; the iShares MSCI Emerging Markets ETF; the SPDR S&P Oil & Gas Exploration & Production ETF and the Industrial Select Sector SPDR fund, each with a 10% weight.
The payout at maturity will be par of $10 plus 200% of any basket gain, subject to a maximum payment of $11.10 per PLUS.
Investors will be fully exposed to any basket decline.
RBC Capital Markets, LLC is the agent with Morgan Stanley Wealth Management handling distribution.
| Issuer: | Royal Bank of Canada
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| Issue: | Performance Leveraged Upside Securities
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| Underlying assets: | Russell 2000 index with a 25% weight, VanEck Vectors Gold Miners ETF, SPDR S&P Regional Banking ETF and Euro Stoxx 50 index, each with a 15% weight; iShares MSCI Emerging Markets ETF, SPDR S&P Oil & Gas Exploration & Production ETF and Industrial Select Sector SPDR fund, each with a 10% weight.
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| Amount: | $8,577,040
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| Maturity: | Dec. 30, 2020
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| Coupon: | 0%
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| Price: | Par of $10
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| Payout at maturity: | Par plus 200% of any basket gain, subject to $11.10 maximum payment per PLUS; 1% loss per 1% decline
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| Initial levels: | 1,487.512 for Russell, $40.91 for gold ETF, $38.10 for banking ETF, 3,405.35 for Stoxx, $40.91 for EM ETF, $53.68 for oil ETF, $72.06 for industrial ETF
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| Pricing date: | July 21
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| Settlement date: | July 24
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| Agent: | RBC Capital Markets, LLC
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| Distribution: | Morgan Stanley Wealth Management
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| Fees: | 1.75%
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| Cusip: | 78014K857
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