By Angela McDaniels
Tacoma, Wash., Aug. 30 – Royal Bank of Canada priced $802,000 of direct investment notes due Sept. 8, 2017 linked to the August 2016 RBC Capital Markets U.S. Equity Top Picks List, according to a 424B2 filing with the Securities and Exchange Commission.
The list includes Air Lease Corp., Amphenol Corp., Aramark, Broadcom Ltd., Brookdale Senior Living Inc., Discover Financial Services, Dollar Tree, Inc., Dow Chemical Co., Louisiana-Pacific Corp., Marathon Petroleum Corp., Microsemi Corp., Newell Rubbermaid Inc., PNC Financial Services Group. Inc., Regency Centers Corp., ServiceNow, Inc., Voya Financial, Inc., Whirlpool Corp. and Yum! Brands, Inc.
A top pick represents an RBC analyst’s best idea in the sector, which is expected to provide significant absolute total return over 12 months with a favorable risk-reward ratio.
Interest will be 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 in 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. This payment will be less than par if the percentage amount is less than 102.3%.
The percentage amount will be equal to 100% plus the quotient of (a) the final basket level minus the initial basket level divided by (b) the initial basket level.
The basket initially consists of a number of shares of each reference stock equal to $55.55 divided by that stock’s initial share price. The initial basket level is $1,000, and the final basket level will be the value of the shares in the basket on the valuation date.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
|
| Issue: | Direct Investment Notes
|
| Underlier: | August 2016 RBC Capital Markets U.S. Equity Top Picks List
|
| Amount: | $802,000
|
| Maturity: | Sept. 8, 2017
|
| Coupon: | 97.75% of sum of dividend amounts for each basket stock; payable quarterly but could be zero
|
| Price: | Par
|
| Payout at maturity: | For each $1,000 principal amount of notes, product of $977.50 and percentage amount, which equals 100% plus basket return
|
| Pricing date: | Aug. 26
|
| Settlement date: | Aug. 31
|
| Underwriter: | RBC Capital Markets, LLC
|
| Fees: | 1.5%
|
| Cusip: | 78012KSG3
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
