New Issue: RBC prices $5.46 million capped gears linked to four ETFs

By Angela McDaniels

Tacoma, Wash., April 17 – Royal Bank of Canada priced $5.46 million of 0% capped gears due July 17, 2018 linked to a basket of four exchange-traded funds, according to a 424B2 filing with the Securities and Exchange Commission.

The basket includes the SPDR S&P 500 exchange-traded fund with a 38% weight, the iShares MSCI EAFE exchange-traded fund with a 31% weight, the iShares Russell 2000 exchange-traded fund with a 17% weight and the iShares MSCI Emerging Markets exchange-traded fund with a 14% weight.

If the basket return is positive, the payout at maturity will be par of $10 plus three times the basket return, subject to a maximum return of 14%. If the basket return is negative, investors will be exposed to the decline.

UBS Financial Services Inc. and RBC Capital Markets, LLC are the agents.

Issuer:	Royal Bank of Canada
Issue:	Capped gears
Underlying ETFs: SPDR S&P 500 ETF (38% weight), iShares MSCI EAFE ETF (31% weight), iShares Russell 2000 ETF (17% weight) and iShares MSCI Emerging Markets ETF (14% weight)
Amount:	$5,464,000
Maturity:	July 17, 2018
Coupon:	0%
Price:	Par of $10
Payout at maturity:	If basket return is positive, par plus three times basket return, subject to 14% maximum return; if basket return is negative, one-to-one exposure to decline
Initial share prices:	$234.03 for SPDR S&P 500, $135.04 for iShares Russell 2000, $61.99 for iShares MSCI EAFE and $39.31 for iShares MSCI Emerging Markets ETF
Pricing date:	April 12
Settlement date:	April 18
Agents:	UBS Financial Services Inc. and RBC Capital Markets, LLC
Fees:	2%
Cusip:	78014E612

© 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.