Published on 9/25/2018 in the Prospect News Structured Products Daily.
New Issue: RBC sells $207,000 7.8% contingent coupon autocalls tied to bank stocks
By Susanna Moon
Chicago, Sept. 25 – Royal Bank of Canada priced $207,000 of autocallable contingent coupon barrier notes due Sept. 17, 2021 linked to the least performing 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 pay a contingent quarterly coupon at an annual rate of 7.8% if each stock closes at or above its 70% coupon barrier on the observation date for that quarter.
The notes will be called at par if each stock closes at or above its initial level on any quarterly observation date.
The payout at maturity will be par unless any stock finishes below its 70% trigger level, in which case investors will be fully exposed to any losses of the worst performing stock.
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 assets: | Bank of America Corp. (Symbol: BAC), Citigroup Inc. (Symbol: C) and JPMorgan Chase & Co. (Symbol: JPM)
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Amount: | $207,000
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Maturity: | Sept. 17, 2021
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Coupon: | 7.8% annualized, payable quarterly if each stock closes at or above 70% coupon barrier on observation date for that quarter
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Price: | Par
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Payout at maturity: | Par unless any stock finishes below 70% trigger, in which case 1% loss per 1% decline of worst performing stock
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Call: | At par if each stock closes at or above initial level on any quarterly observation date beginning March 14, 2019
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Initial levels: | $30.37 for BofA, $70.54 for Citi and $113.50 for JPMorgan
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Barrier levels: | $21.26 for BofA, $49.38 for Citi and $79.45 for JPMorgan, 70% of initial levels
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Pricing date: | Sept. 14
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Settlement date: | Sept. 19
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Agent: | RBC Capital Markets, LLC
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Fees: | 2.25%
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Cusip: | 78013XE79
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