By Wendy Van Sickle
Columbus, Ohio, Nov. 6 – Royal Bank of Canada priced $600,000 of 0% barrier booster notes due May 2, 2022 linked to the lesser performing of the iShares MSCI EAFE exchange-traded fund and the iShares MSCI Emerging Markets exchange-traded fund according to a 424B2 filing with the Securities and Exchange Commission.
If the lesser-performing ETF’s return is greater than the booster coupon, the payout at maturity will be par plus that ETF’s return. The booster coupon is expected to be 43%.
If the lesser-performing ETF’s return is positive but does not exceed the booster coupon, the payout will be par plus the booster coupon.
If the lesser-performing ETF’s return is zero to negative 30%, the payout will be par.
If the lesser-performing ETF’s return is less than negative 30%, investors will lose 1% for every 1% that the lesser-performing ETF’s final share price is less than its initial share price.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
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| Issue: | Barrier booster notes
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| Underlying ETFs: | iShares MSCI EAFE exchange-traded fund and iShares MSCI Emerging Markets exchange-traded fund
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| Amount: | $600,000
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| Maturity: | May 2, 2022
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | If lesser performing fund gains, greater of par plus return of lesser performing fund and par plus 43%; if lesser performing fund declines but finishes at or above 70% of initial level, par; otherwise, full exposure to any losses
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| Initial levels: | $69.18 for EAFE, $46.14 for Emerging Markets
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| Barrier levels: | $48.43 for EAFE, $32.30 for Emerging Markets; 70% of initial levels
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| Pricing date: | Oct. 27
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| Settlement date: | Oct. 31
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 2.75%
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| Cusip: | 78013GKQ7
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