New Issue: RBC prices $765,000 direct investment notes on March top picks list

By Marisa Wong

Morgantown, W.Va., April 10 – Royal Bank of Canada priced $765,000 of direct investment notes due April 9, 2018 linked to the March 2017 RBC Capital Markets U.S. Equity Top Picks List, according to a 424B2 filing with the Securities and Exchange Commission.

The equally weighted list is composed of Air Lease Corp., Amphenol Corp., Aramark, Broadcom Ltd., 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.

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 the quotient of (a) the final basket level minus the initial basket level divided by (b) the initial basket level. The percentage amount must exceed 102.3% in order for the payout to exceed par.

RBC Capital Markets, LLC is the underwriter.

Issuer:	Royal Bank of Canada
Issue:	Direct investment notes
Underlier:	March 2017 RBC Capital Markets U.S. Equity Top Picks List: equal weights of Air Lease Corp. (Symbol: AL), Amphenol Corp. (Symbol: APH), Aramark (Symbol: ARMK), Broadcom Ltd. (Symbol: AVGO), Boston Properties, Inc. (Symbol: BXP), Discover Financial Services (Symbol: DFS), Dollar Tree, Inc. (Symbol: DLTR), Dow Chemical Co. (Symbol: DOW), Interpublic Group of Cos., Inc. (Symbol: IPG), Louisiana-Pacific Corp. (Symbol: LPX), Marathon Petroleum Corp. (Symbol: MPC), Microsemi Corp. (Symbol: MSCC), Newell Brands Inc. (Symbol: NWL), PNC Financial Services Group. Inc. (Symbol: PNC), ServiceNow, Inc. (Symbol: NOW) and Whirlpool Corp. (Symbol: WHR)
Amount:	$765,000
Maturity:	April 9, 2018
Coupon:	97.75% of sum of dividend amounts for each basket stock; payable quarterly but could be zero
Price:	Par
Payout at maturity:	For each $1,000 principal amount of notes, product of $977.50 and percentage amount, which equals quotient of final basket level minus initial basket level divided by initial basket level
Pricing date:	March 28
Settlement date:	March 31
Underwriter:	RBC Capital Markets, LLC
Fees:	1.5%
Cusip:	78012KD61

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