Published on 9/19/2023 in the Prospect News Structured Products Daily.
New Issue: RBC prices $1.45 million levered market plus notes linked to stock basket
By William Gullotti
Buffalo, N.Y., March 7 – Royal Bank of Canada priced $1.45 million of 0% levered market plus notes due Sept. 19, 2028 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., Abbott Laboratories, Humana Inc., Intuitive Surgical, Inc., Eli Lilly and Co., Merck & Co., Inc., Stryker Corp., Thermo Fisher Scientific Inc. and UnitedHealth Group Inc.
The payout at maturity will be par plus 1.13 times any basket gain.
Investors will receive par if the basket falls by up to 25%. Otherwise, investors will be fully exposed to the basket’s decline from its initial level.
RBC Capital Markets, LLC is the underwriter with JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC as placement agents.
| Issuer: | Royal Bank of Canada
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| Issue: | Levered market plus notes
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| Underlying basket: | AbbVie Inc., Abbott Laboratories, Humana Inc., Intuitive Surgical, Inc., Eli Lilly and Co., Merck & Co., Inc., Stryker Corp., Thermo Fisher Scientific Inc. and UnitedHealth Group Inc.; equal weights
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| Amount: | $1.45 million
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| Maturity: | Sept. 19, 2028
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | Par plus 1.13 times any basket gain; par if basket falls by 25% or less; otherwise, 1% loss for every 1% decline in the basket from initial level
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| Initial levels: | $153.64 for AbbVie, $102.65 for Abbott, $471.57 for Humana, $303.74 for Intuitive, $591.61 for Eli Lilly, $108.24 for Merck, $295.00 for Stryker, $515.64 for Thermo Fisher, $483.60 for UnitedHealth
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| Barrier level: | 75% of initial level
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| Pricing date: | Sept. 14
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| Settlement date: | Sept. 19
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| Underwriter: | RBC Capital Markets, LLC
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| Placement agents: | JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC
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| Fees: | 3%
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| Cusip: | 78016NC88
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