Published on 2/28/2019 in the Prospect News Structured Products Daily.
New Issue: RBC sells $6.77 million trigger absolute return step notes on basket
By Wendy Van Sickle
Columbus, Ohio, Feb. 28 – Royal Bank of Canada priced $6.77 million of 0% trigger absolute return step securities due Feb. 29, 2024 linked to a basket of six indexes, according to a 424B2 filing with the Securities and Exchange Commission.
The basket components are the Euro Stoxx 50 index with a 40% weight, the FTSE 100 index with a 20% weight, the Nikkei 225 index with a 20% weight, the Swiss Market index with a 7.5% weight, the S&P/ASX 200 index with a 7.5% weight and the Hang Seng index with a 5% weight.
If the final basket level is greater than or equal to the initial level, the payout at maturity will be par of $10 plus the greater of the step return and the basket return. The step return is 51.5%.
If the final basket level is less than the initial level but greater than or equal to the downside threshold level, 70% of the initial level, the payout will be par plus the absolute value of the basket return.
If the final level is less than the downside threshold level, investors will lose 1% for every 1% that the final level is less than the initial level.
UBS Financial Services Inc. is the agent.
| Issuer: | Royal Bank of Canada
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| Issue: | Trigger absolute return step securities
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| Underlying basket: | Euro Stoxx 50 (40% weight), FTSE 100 index (20% weight), Nikkei 225 index (20% weight), Swiss Market index (7.5% weight), S&P/ASX 200 index (7.5% weight) and Hang Seng index (5% weight)
|
| Amount: | $6,768,780
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| Maturity: | Feb. 29, 2024
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| Coupon: | 0%
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| Price: | Par of $10
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| Payout at maturity: | If each index gains, par plus greater of 51.5% and index return; if index falls by up to 30%, par plus absolute return; otherwise, 1% loss per 1% decline
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| Initial index level: | 3,289.32 for Stoxx, 7,151.12 for FTSE, 21,449.39 for Nikkei, 9,461.21 for Swiss Market, 6,128.391 for S&P/ASX and 28,772.06 for Hang Seng
|
| Pricing date: | Feb. 26
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| Settlement date: | Feb. 28
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| Agent: | UBS Financial Services Inc.
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| Fees: | 3.5%
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| Cusip: | 78014H276
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