RBC plans capped buffer gears linked to basket of 10 financial stocks

By Marisa Wong

Morgantown, W.Va., April 7 – Royal Bank of Canada plans to price 0% capped buffer gears due April 30, 2019 linked to an equally weighted basket of 10 stocks, according to a 424B2 filing with the Securities and Exchange Commission.

The underlying stocks are American International Group, Inc., Ally Financial Inc., Ameriprise Financial, Inc., Bank of America Corp., Citigroup Inc., Capital One Financial Corp., Discover Financial Services, Goldman Sachs Group, Inc., Invesco, Ltd. and JPMorgan Chase & Co.

If the basket return is greater than zero, the payout at maturity will be par of $10 plus 1.5 times the basket return, subject to a maximum return that is expected to be 34% to 39% and will be set at pricing. If the basket finishes flat or falls by up to 10%, the payout will be par. Investors will be exposed to any losses beyond 10%.

UBS Financial Services Inc. and RBC Capital Markets, LLC are the agents.

The notes are expected to price April 26.

The Cusip number is 78013C864.

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