Published on 6/5/2019 in the Prospect News Structured Products Daily.
New Issue: RBC prices $7.09 million capped trigger gears on index basket
By Wendy Van Sickle
Columbus, Ohio, June 5 – Royal Bank of Canada priced $7.09 million of 0% capped trigger gears due May 31, 2022 linked to an unequally-weighted basket of indexes, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the Euro Stoxx 50 index with a 40% weight, the FTSE 100 index with a 20% weight, the Nikkei Stock Average 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 basket return is greater than zero, the payout at maturity will be par of $10 plus five times the basket return, capped at par plus 43.9%.
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: | Capped trigger gears
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| Underlying basket: | Euro Stoxx 50 index (40% weight), FTSE 100 index (20% weight), Nikkei Stock Average index (20% weight), Swiss Market index (7.5% weight), S&P/ASX 200 index (7.5% weight) and Hang Seng index (5% weight)
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| Amount: | $7,086,270
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| Maturity: | May 31, 2022
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | Par plus 5 times any basket gain, capped at par plus 43.9%; 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: | 3,297.81 for Stoxx, 7,185.30 for FTSE, 21,003.37 for Nikkei, 9,541.97 for Swiss, 6,440.026 for S&P/ASX and 27,235.71 for Hang Seng
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| Pricing date: | May 29
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| Settlement date: | May 31
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| Underwriter: | RBC Capital Markets, LLC, UBS Financial Services Inc.
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| Fees: | 2.5%
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| Cusip: | 78014H706
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