Chicago, Feb. 23 – Royal Bank of Canada priced $700,000 of autocallable contingent coupon barrier notes due Jan. 15, 2027 linked to the performance of the Energy Select Sector SPDR Fund and the SPDR S&P Regional Banking ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes pay a contingent quarterly coupon at the rate of 12.75% per year if the worst performing ETF closes at or above its trigger level, 70% of its initial level, on the relevant observation date.
The notes will be called at par plus coupon if the worst performing ETF closes at or above its initial level on any quarterly observation date starting after six months.
If the notes are not called, the payout at maturity will be par plus the final coupon unless the worst performing ETF finishes below its trigger level, in which case investors will be fully exposed to the decline of the worst performing ETF from its initial level, payable in shares.
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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| Underlying funds: | Energy Select Sector SPDR Fund and SPDR S&P Regional Banking ETF
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| Amount: | $700,000
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| Maturity: | Jan. 15, 2027
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| Coupon: | 12.75% annual rate, payable quarterly if worst performing ETF closes at or above trigger level on the relevant observation date
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| Price: | Par
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| Payout at maturity: | If all ETFs finish at or above trigger level, par plus the final coupon; otherwise, lose 1% for each 1% decline of worst performing ETF from initial level, payable in shares
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| Call: | At par plus coupon if each ETF closes at or above initial level on any quarterly observation date starting after six months
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| Initial levels: | $50.39 for banking, $82.68 for energy
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| Trigger levels: | $35.27 for banking, $57.88 for energy; 70% of initial levels
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| Pricing date: | Jan. 12
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| Settlement date: | Jan. 18
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 2.35%
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| Cusip: | 78015QHD6
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