Published on 10/10/2017 in the Prospect News Structured Products Daily.
New Issue: RBC sells $935,000 direct investment notes on September top picks list
By Marisa Wong
Morgantown, W.Va., Oct. 10 – Royal Bank of Canada priced $935,000 of direct investment notes due Oct. 9, 2018 linked to the September 2017 RBC Capital Markets U.S. Equity Top Picks List, according to a 424B2 filing with the Securities and Exchange Commission.
The equally weighted list is comprised of Air Lease Corp., Amphenol Corp., Broadcom Ltd., Discover Financial Services, Dollar Tree, Inc., DowDuPont Inc., Gartner, Inc., Louisiana-Pacific Corp., Marathon Petroleum Corp., Newell Brands Inc., PNC Financial Services Group. Inc., Regency Centers Corp., ServiceNow, Inc. and Whirlpool Corp.
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 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.
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 the quotient of (a) the final basket level minus the initial basket level divided by (b) the initial basket level. The percentage amount must exceed 102.3% in order for the payout to exceed par.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
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| Issue: | Direct investment notes
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| Underlier: | September 2017 RBC Capital Markets U.S. Equity Top Picks List: equal weights of Air Lease Corp. (Symbol: AL), Amphenol Corp. (Symbol: APH), Broadcom Ltd. (Symbol: AVGO), Discover Financial Services (Symbol: DFS), Dollar Tree, Inc. (Symbol: DLTR), DowDuPont Inc. (Symbol: DWDP), Gartner, Inc. (Symbol: IT), Louisiana-Pacific Corp. (Symbol: LPX), Marathon Petroleum Corp. (Symbol: MPC), Newell Brands Inc. (Symbol: NWL), PNC Financial Services Group. Inc. (Symbol: PNC), Regency Centers Corp. (Symbol: REG), ServiceNow, Inc. (Symbol: NOW) and Whirlpool Corp. (Symbol: WHR)
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| Amount: | $935,000
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| Maturity: | Oct. 9, 2018
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| Coupon: | 97.75% of sum of dividend amounts for each basket stock; payable quarterly but could be zero
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| Price: | Par
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| Payout at maturity: | For each $1,000 principal amount of notes, product of $977.50 and percentage amount, which equals quotient of final basket level minus initial basket level divided by initial basket level
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| Initial prices: | $41.02 for Air Lease, $81.97 for Amphenol, $240.58 for Broadcom, $64.06 for Discover, $85.67 for Dollar Tree, $68.80 for DowDuPont, $123.37 for Gartner, $28.55 for Louisiana-Pacific, $55.24 for Marathon, $115.50 for ServiceNow, $41.58 for Newell, $134.32 for PNC, $61.86 for Regency, $181.53 for Whirlpool
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| Pricing date: | Sept. 27
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| Settlement date: | Sept. 29
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| Underwriter: | RBC Capital Markets, LLC
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| Fees: | 1.5%
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| Cusip: | 78013GEV3
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