By William Gullotti
Buffalo, N.Y., Sept. 6 – Royal Bank of Canada priced $1.16 million issuer callable contingent coupon barrier notes due Sept. 6, 2024 tied to the shares of Energy Select Sector SPDR Fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly contingent coupon at an annual rate of 11.8% if the ETF closes above its 60% coupon barrier on the observation date for that quarter.
The notes may be called at par plus any coupon due at the option of the issuer on any quarterly coupon payment date after six months.
Investors will receive par plus the contingent coupon if the final level of the ETF is above its 60% trigger level.
Otherwise, investors will be fully exposed to the losses of the ETF, payable as a number of shares equal to $1,000 divided by the initial price.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
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| Issue: | Issuer callable contingent coupon barrier notes
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| Underlying fund: | Energy Select Sector SPDR Fund
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| Amount: | $1.16 million
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| Maturity: | Sept. 6, 2024
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| Coupon: | 11.8% per year, paid quarterly if ETF closes above coupon barrier on the related observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par plus contingent coupon unless ETF closes below trigger level, in which case full exposure to losses of ETF, payable as 12.42 shares
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| Call option: | At par plus any coupon due at the option of the issuer on any quarterly coupon payment date after six months
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| Initial price: | $80.50
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| Coupon barrier level: | $48.30; 60% of initial level
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| Trigger level: | $48.30; 60% of initial level
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| Pricing date: | Aug. 31
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| Settlement date: | Sept. 6
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 1.75%
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| Cusip: | 78015QBW0
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