Published on 1/20/2020 in the Prospect News Structured Products Daily.
New Issue: RBC prices $1.73 million barrier booster notes linked to S&P 500, Dow
By Kiku Steinfeld
Chicago, Jan. 20 – Royal Bank of Canada priced $1.73 million of 0% barrier booster notes due Jan. 22, 2026 linked to the worse performing of the S&P 500 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
If the final level of the lesser performing index is greater than or equal to its initial level but its percentage change does not exceed the booster coupon, 40% of its initial level, the payout will be par plus the booster coupon.
If the final level of the lesser performing index is greater than its initial level and its percentage change exceeds the booster coupon, the payout will be par plus the return of the lesser performing index.
If the final level of the lesser performing index is less than its initial level, but is not less than its barrier level, 60% of its initial level, the payout will be par.
If the final level of the lesser performing asset is less than its barrier level, investors will be fully exposed to the decline of the lesser performing index from its initial level.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
|
| Issue: | Barrier booster notes
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| Underlying indexes: | S&P 500, Dow Jones industrial average
|
| Amount: | $1,731,000
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| Maturity: | Jan. 22, 2026
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| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If lesser performing index increases by up to 40%, par plus booster coupon; if lesser performing index increases by more than 40%, par plus return of lesser performing index; if lesser performing index falls by up to 40%, par; if final level decreases by more than 40%, full exposure to decline
|
| Initial levels: | 3,316.81 for S&P, 29,297.64 for Dow
|
| Barrier levels: | 1,990.09 S&P, 17,578.58 for Dow, 60% of initial levels
|
| Booster coupon: | 40% of initial levels
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| Pricing date: | Jan. 16
|
| Settlement date: | Jan. 22
|
| Agent: | RBC Capital Markets, LLC
|
| Fees: | 3%
|
| Cusip: | 78015KPN8
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