Published on 11/27/2018 in the Prospect News Structured Products Daily.
New Issue: RBC sells $3.55 million issuer callable contingent coupon barrier notes on stocks
By Sarah Lizee
Olympia, Wash., Nov. 27 – Royal Bank of Canada priced $3.55 million of issuer callable contingent coupon barrier notes due Nov. 25, 2022 linked to the worst performing of the common stocks of Amazon.com, Inc., Apple Inc., Alphabet Inc. and Microsoft Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly coupon at an annual rate of 17.85% if each stock closes above its coupon barrier level, 60% of its initial level, on the observation date for that quarter.
The issuer may call the notes at par plus any contingent coupon otherwise due on any coupon payment date beginning on May 20, 2019.
The payout at maturity will be par plus the final coupon unless any stock finishes below the 60% trigger level, in which case investors will lose 1% for each 1% that the worst-performing stock’s final level is less than its initial level.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
|
| Issue: | Issuer callable contingent coupon barrier notes
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| Underlying stocks: | Amazon.com, Inc., Apple Inc., Alphabet Inc. and Microsoft Corp.
|
| Amount: | $3.55 million
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| Maturity: | Nov. 25, 2022
|
| Coupon: | 17.85%, payable quarterly if each stock closes at or above coupon barrier on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless any stock finishes below trigger price, in which case par plus return of the least-performing stock
|
| Call: | At par plus any contingent coupon due on any coupon payment date beginning on May 20, 2019
|
| Initial prices: | $179.10 for Apple, $1,508.21 for Amazon, $1,028.28 for Alphabet and $102.12 for Microsoft
|
| Coupon barriers/triggers: | $107.46 for Apple, $904.93 for Amazon, $616.97 for Alphabet and $61.27 for Microsoft; 60% of initial prices
|
| Pricing date: | Nov. 20
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| Settlement date: | Nov. 26
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| Agent: | RBC Capital Markets, LLC
|
| Fees: | None
|
| Cusip: | 78013XT40
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