RBC to price barrier booster notes linked to iShares EAFE, EM ETFs

By Marisa Wong

Morgantown, W.Va., Feb. 20 – Royal Bank of Canada plans to price 0% barrier booster notes due Feb. 28, 2023 linked to the lesser performing of the iShares MSCI EAFE exchange-traded fund and the iShares MSCI Emerging Markets exchange-traded fund, according to an FWP 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 41.5% to 48.5% and will be set at pricing.

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 40%, the payout will be par.

If the lesser-performing ETF’s return is less than negative 40%, 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.

The notes will settle on Feb. 23.

The Cusip number is 78013XFA1.

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