RBC plans direct investment notes on 20 stocks from Top 30 Global Ideas

By Marisa Wong

Morgantown, W.Va., Feb. 22 – Royal Bank of Canada plans to price direct investment notes due March 6, 2019 linked to a basket of 20 common equity securities from the RBC Capital Markets Top 30 Global Ideas for 2018, according to an FWP filing with the Securities and Exchange Commission.

A Top 30 Global Idea was identified as of Dec. 20 as one of the most attractive investment ideas for the coming year and was rated outperform by RBC Capital Markets’ research analysts. The reference stocks are the securities included in the 30 Global Ideas for 2018 that have their primary trading market on a U.S. securities exchange.

The equally weighted basket is composed of the stocks of Air Lease Corp., Aptiv plc, Broadcom Ltd., Canadian Natural Resources Ltd., Celgene Corp., Dollar Tree, Inc., DowDuPont Inc., Facebook, Inc., Gartner, Inc., GDS Holdings Ltd., Magna International Inc., Netflix, Inc., Parsley Energy, Inc., Raytheon Co., ServiceNow, Inc., Sun Life Financial Inc., Walt Disney Co., TransCanada Corp., Waste Connections, Inc. and Xylem Inc.

Interest is payable quarterly. The amount of each interest payment, if any, will depend on the amount of dividends paid on each basket stock during the preceding quarter and will equal, for each $1,000 principal amount, 97.75% of the sum of the dividend amounts for each of the basket stocks.

The dividend amount for each stock equals (a) $1,000 divided by the initial price of the applicable stock multiplied by (b) the applicable component weighting multiplied by (c) 100% of the gross cash distributions (including ordinary and extraordinary dividends) per share declared by the applicable stock issuer where the date that the applicable stock has commenced trading ex-dividend on its primary U.S. securities exchange as to each relevant distribution occurs during the relevant interest calculation period.

For each $1,000 principal amount of notes, the payout at maturity will be the product of $977.50 and the percentage amount.

The percentage amount will equal (a) 100% plus (b) the sum of the weighted returns for the basket stocks. The payout will be less than par if the percentage amount is less than 102.3%.

RBC Capital Markets, LLC is the underwriter.

The notes will price on Feb. 23.

The Cusip number is 78013GFS9.

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