Published on 4/6/2020 in the Prospect News Structured Products Daily.
New Issue: RBC sells $600,000 contingent coupon barrier autocalls on stock basket
By Sarah Lizee
Olympia, Wash., April 6 – Royal Bank of Canada priced $600,000 of autocallable contingent coupon barrier notes due March 30, 2023 tied to an equally weighted basket consisting of the common stocks of Bank of America Corp., Citigroup Inc. and JPMorgan Chase & Co., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 9.75% if the basket closes at or above its 60% coupon barrier on the observation date for that quarter.
The notes will be automatically called at par plus the coupon if the basket closes above its initial level on any observation date after one year.
The payout at maturity will be par unless the basket finishes below its 60% knock-in level, in which case investors will be fully exposed to the basket’s decline.
RBC Capital Markets, LLC is the agent.
Issuer: | Royal Bank of Canada
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Issue: | Autocallable contingent coupon barrier notes
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Basket components: | Bank of America Corp., Citigroup Inc. and JPMorgan Chase & Co., equally weighted
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Amount: | $600,000
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Maturity: | March 30, 2023
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Coupon: | 9.75%, payable each quarter that basket closes at or above coupon barrier on observation date for that quarter
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Price: | Par
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Payout at maturity: | Par unless basket finishes below knock-in level, in which case investors will be fully exposed to the basket’s decline
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Call: | Automatically at par plus coupon if basket closes at or above initial level on any quarterly observation date after one year
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Initial prices: | $21.60 for BofA, $43.80 for Citi, $91.13 for JPM
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Coupon barrier: | 60% of initial basket level
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Knock-in level: | 60% of initial basket level
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Pricing date: | March 27
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Settlement date: | March 31
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Agent: | RBC Capital Markets, LLC
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Fees: | 2.25%
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Cusip: | 78015KRQ9
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