Published on 10/19/2023 in the Prospect News Structured Products Daily.
New Issue: RBC sells $2.46 million capped buffer gears tied to 12-stock basket
By William Gullotti
Buffalo, N.Y., Oct. 19 – Royal Bank of Canada priced $2.46 million of capped buffer gears due Dec. 31, 2024 linked to an equally weighted basket of stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of AbbVie Inc., Alexandria Real Estate Equities, Inc., American Electric Power Co., Inc., Bank of America Corp., Corteva, Inc., EOG Resources, Inc., Humana Inc., Johnson Controls International plc, Norfolk Southern Corp., Qualcomm Inc., Starbucks Corp. and Truist Financial Corp.
The payout at maturity will be par of $10 plus two times any basket gain, capped at par plus 22.5%.
If the basket finishes flat or falls by up to 10%, the payout will be par.
Otherwise, investors will lose 1% for every 1% that the basket declines beyond the 10% buffer.
UBS Financial Services Inc. and RBC Capital Markets, LLC are the agents.
| Issuer: | Royal Bank of Canada
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| Issue: | Capped buffer gears
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| Underlying stocks: | AbbVie Inc., Alexandria Real Estate Equities, Inc., American Electric Power Co., Inc., Bank of America Corp., Corteva, Inc., EOG Resources, Inc., Humana Inc., Johnson Controls International plc, Norfolk Southern Corp., Qualcomm Inc., Starbucks Corp. and Truist Financial Corp.; equally weighted
|
| Amount: | $2,458,000
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| Maturity: | Dec. 31, 2024
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| Coupon: | 0%
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| Price: | Par of $10
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| Payout at maturity: | If basket return is greater than zero, par plus two times the basket return, capped at par plus 22.5%; par if the basket declines by 10% or less; 1% loss for every 1% decline beyond 10%
|
| Initial level: | $147.96 for AbbVie Inc., $98.88 for Alexandria Real Estate Equities, Inc., $74.47 for American Electric Power Co., Inc., $26.76 for Bank of America Corp., $49.55 for Corteva, Inc., $133.84 for EOG Resources, Inc., $505.97 for Humana Inc., $51.64 for Johnson Controls International plc, $200.94 for Norfolk Southern Corp., $108.66 for Qualcomm Inc., $91.48 for Starbucks Corp., $28.41 for Truist Financial Corp.
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| Buffer level: | 90% of initial level
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| Pricing date: | Oct. 13
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| Settlement date: | Oct. 18
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| Agents: | UBS Financial Services Inc. and RBC Capital Markets, LLC
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| Fees: | 0%
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| Cusip: | 78016R116
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