By Susanna Moon
Chicago, Feb. 16 – Royal Bank of Canada priced $4.05 million of trigger autocallable contingent yield notes due Feb. 4, 2021 linked to the least performing of the iShares Russell 2000 exchange-traded fund and the iShares MSCI EAFE ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 7.6% if each fund closes at or above its 75% coupon barrier on each trading day for that quarter.
The notes will be called at par plus the contingent coupon if each component closes at or above its initial level on any review date after six months.
The payout at maturity will be par plus the contingent coupon unless either fund finishes below its 75% downside threshold, in which case investors will be fully exposed to any losses of the worse performing fund.
UBS Financial Services Inc. and RBC Capital Markets, LLC are the agents.
| Issuer: | Royal Bank of Canada
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| Issue: | Trigger autocallable contingent yield notes
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| Underlying funds: | iShares Russell 2000 ETF and iShares MSCI EAFE ETF
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| Amount: | $4,045,000
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| Maturity: | Feb. 4, 2021
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| Coupon: | 7.6% annualized, payable quarterly if each fund closes at or above 75% coupon barrier on each trading day for that quarter
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| Price: | Par of $10
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| Payout at maturity: | If each fund finishes at or above downside threshold, par; otherwise, full exposure to decline of worse performing fund
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| Call: | At par plus contingent coupon if each fund closes at or above initial level on any quarterly review date after six months
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| Initial levels: | $156.85 for Russell fund and $74.05 for EAFE fund
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| Downside thresholds: | $117.64 for Russell fund and $55.54 for EAFE fund; 75% of initial levels
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| Pricing date: | Feb. 1
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| Settlement date: | Feb. 6
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| Agents: | UBS Financial Services Inc. and RBC Capital Markets, LLC
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| Fees: | 2%
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| Cusip: | 78013Q350
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