By William Gullotti
Buffalo, N.Y., Sept. 8 – Royal Bank of Canada priced $1.95 million of trigger autocallable contingent yield notes due Sept. 4, 2026 linked to the performance of the SPDR Dow Jones Industrial Average ETF Trust and the Energy Select Sector SPDR Fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at the rate of 8.5% per year if each ETF closes at or above its coupon barrier, 60% of its initial level, on the related observation date.
The notes will be automatically called at par plus the coupon if each ETF closes at or above its initial level on any quarterly call observation date after six months.
If the notes are not called and the final level of each ETF is greater than or equal to its downside threshold level, 60% of initial level, the payout at maturity will be par plus the final coupon.
Otherwise, investors will lose 1% for every 1% that the worst performer declines from its initial level.
UBS Financial Services LLC 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: | SPDR Dow Jones Industrial Average ETF Trust, Energy Select Sector SPDR Fund
|
| Amount: | $1,945,000
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| Maturity: | Sept. 4, 2026
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| Coupon: | 8.5% per year, paid quarterly if each ETF closes at or above its coupon barrier on the related observation date
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus final coupon unless worst performer finishes below downside threshold level, in which case 1% loss for each 1% decline of that ETF from initial level
|
| Call: | Automatically at par plus the coupon if each ETF closes at or above initial level on any quarterly call observation date after six months
|
| Initial levels: | $348.98 for Dow ETF, $90.74 for Energy ETF
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| Coupon barrier levels: | $209.39 for Dow ETF, $54.44 for Energy ETF; 60% of initial levels
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| Downside thresholds: | $209.39 for Dow ETF, $54.44 for Energy ETF; 60% of initial levels
|
| Pricing date: | Sept. 1
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| Settlement date: | Sept. 6
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| Agents: | UBS Financial Services LLC and RBC Capital Markets, LLC
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| Fees: | 2%
|
| Cusip: | 78016M802
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