By William Gullotti
Buffalo, N.Y., Jan. 6 – Royal Bank of Canada priced $2.13 million of 0% capped geared buffer securities due March 27, 2028 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
At maturity, if the index gain is greater than or equal to 20%, the payout will be par plus 37% plus 1.8 times any gain above 20%, subject to a maximum payout of par plus 91%.
If the index finishes at or above its initial level, but gains less than 20%, the payout will be par plus the index return plus 17%.
If the index declines but finishes at or above its 90% buffer level, investors will receive par plus 1.7 times the quantity of the return plus 10%.
If the index finishes below buffer level but at or above its 70% downside threshold, investors will lose 1.5% for every 1% of index decline below 10%.
Otherwise, investors will lose 1% for every 1% of index decline from its initial level.
RBC Capital Markets, LLC and UBS Financial Services Inc. are the agents.
| Issuer: | Royal Bank of Canada
|
| Issue: | Capped geared buffer securities
|
| Underlying index: | S&P 500 index
|
| Amount: | $2,132,000
|
| Maturity: | March 27, 2028
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | If the index gains at least 20%, par plus 37% plus 1.8 times any gain above 20%, subject to a maximum payout of par plus 91%; if the index finishes at or above initial level but gains less than 20%, par plus the index return plus 17%; if the index declines but finishes at or above buffer level, par plus 1.7 times the quantity of the return plus 10%; if the index finishes below buffer level but not below downside threshold, investors will lose 1.5% for every 1% drop below 10%; otherwise, lose 1% for every 1% decline from initial level
|
| Initial level: | Average of the closing levels on every trading day from Dec. 22, 2022 to Feb. 1
|
| Final level: | Average of the closing levels on every trading day from Dec. 22, 2027 to March 22, 2028
|
| Buffer level: | 90% of initial level
|
| Downside threshold: | 70% of initial level
|
| Pricing date: | Dec. 23
|
| Settlement date: | Dec. 29
|
| Agents: | RBC Capital Markets, LLC and UBS Financial Services Inc.
|
| Fees: | 0.25%
|
| Cusip: | 78016G623
|
|
|
© 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.
