By Taylor Fox
New York, Jan. 25 – Royal Bank of Canada priced $1.2 million of autocallable contingent coupon barrier notes due Jan. 2, 2026 linked to the Energy Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon at the rate of 6.5% per year if the fund closes at or above its trigger price, 65% of its initial price, on the observation date for that quarter.
The notes will be called at par if the fund closes at or above its initial share price on any quarterly observation date after one year.
If the notes are not called, the payout at maturity will be par unless the fund finishes below its 65% trigger price, in which case investors will be fully exposed to the decline.
RBC Capital Markets, LLC is the underwriter.
Issuer: | Royal Bank of Canada
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Issue: | Autocallable contingent coupon barrier notes
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Underlying fund: | Energy Select Sector SPDR fund
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Amount: | $1,200,000
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Maturity: | Jan. 2, 2026
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Coupon: | 6.5% annual rate, payable quarterly if fund closes at or above trigger price on observation date for that quarter
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Price: | Par
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Payout at maturity: | Par unless fund finishes below trigger price, in which case full exposure to decline
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Call: | At par if fund closes at or above initial share price on any quarterly observation date after one year
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Initial share price: | $37.88
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Trigger price: | $24.62, 65% of initial share price
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Pricing date: | Dec. 28
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Settlement date: | Dec. 31
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Underwriter: | RBC Capital Markets, LLC
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Fees: | 3.25%
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Cusip: | 78016EE78
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