Published on 9/29/2019 in the Prospect News Structured Products Daily.
New Issue: RBC prices $1.29 million trigger absolute return step notes linked to index basket
Chicago, Sept. 30 – Royal Bank of Canada priced $1.29 million of 0% trigger absolute return step securities due Aug. 31, 2023 linked to a basket of indexes, according to a 424B2 filing with the Securities and Exchange Commission.
The basket includes 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 basket level, the payout at maturity will be par of $10 plus the greater of 41.5% and the basket return.
If the final basket level is less than the initial basket level and greater than or equal to the downside threshold level, 75% of the initial basket level, the payout will be par plus the absolute value of the basket return.
If the final basket level is less than the downside threshold level, investors will lose 1% for every 1% that the final basket level is less than the initial basket level.
UBS Financial Services Inc. and RBC Capital Markets, LLC are the agents.
| Issuer: | Royal Bank of Canada
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| Issue: | Trigger absolute return step securities
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| Underlying indexes: | Euro Stoxx 50 (40% weight), FTSE 100 (20% weight), Nikkei 225 (20% weight), Swiss Market (7.5% weight), S&P/ASX 200 (7.5% weight) and Hang Seng (5% weight)
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| Amount: | $1,285,000
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| Maturity: | Aug. 31, 2023
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| Coupon: | 0%
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| Price: | Par of $10
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| Payout at maturity: | If final basket level is greater than or equal to initial basket level, par plus greater of 41.5% and basket return; if final basket level is less than initial basket level and greater than or equal to downside threshold level, par plus absolute value of basket return; if final basket level is less than downside threshold level, 1% loss for every 1% that final basket level is less than initial basket level
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| Initial levels: | Stoxx 50 at 3.865.38, FTSE at 7,114.71, Nikkei at 20,479,42, Swiss at 9,758.19, S&P/ASX at 6,500.640 and Hang Seng at 25,615.48
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| Downside threshold: | 75% of initial basket level
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| Pricing date: | Aug. 28
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| Settlement date: | Aug. 30
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| Agents: | UBS Financial Services Inc. and RBC Capital Markets, LLC
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| Fees: | None
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| Cusip: | 78014J371
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