Published on 3/9/2022 in the Prospect News Structured Products Daily.
New Issue: RBC prices $10 million trigger gears on basket of six indexes
By William Gullotti
Buffalo, N.Y., March 9 – Royal Bank of Canada priced $10 million of 0% trigger gears due March 9, 2027 linked to an unequally-weighted basket of indexes, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the S&P 500 index with a 45% weight, the Euro Stoxx 50 index with a 22% weight, the FTSE 100 index with a 9.625% weight, the Nikkei 225 index with a 13.75% weight, the Swiss Market index with a 5.5% weight and the S&P/ASX 200 index with a 4.125% weight.
If the basket return is greater than zero, the payout at maturity will be par of $10 plus 1.5 times the basket return.
Investors will receive par if the basket declines by 25% or less and be fully exposed to the basket’s decline from its initial level if it declines by more than 25%.
RBC Capital Markets, LLC and UBS Financial Services Inc. are the agents.
| Issuer: | Royal Bank of Canada
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| Issue: | Trigger gears
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| Underlying basket: | S&P 500 index (45% weight), Euro Stoxx 50 index (22% weight), FTSE 100 index (9.625% weight), Nikkei 225 index (13.75% weight), Swiss Market index (5.5% weight), S&P/ASX 200 index (4.125% weight)
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| Amount: | $10 million
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| Maturity: | March 9, 2027
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| Coupon: | 0%
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| Price: | Par of $10
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| Payout at maturity: | Par plus 1.5 times any basket gain; par if basket declines by 25% or less; full exposure to basket’s decline from its initial level if it declines by more than 25%
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| Initial levels: | 4,328.87 for S&P, 3,556.01 for Stoxx, 6,987.14 for FTSE, 25,985.47 for Nikkei, 11,300.13 for Swiss, 7,110.829 for S&P/ASX
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| Barrier level: | 75% of initial level
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| Pricing date: | March 4
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| Settlement date: | March 9
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| Underwriter: | RBC Capital Markets, LLC, UBS Financial Services Inc.
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| Fees: | 3.5%
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| Cusip: | 78016C549
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