Published on 9/21/2018 in the Prospect News Structured Products Daily.
New Issue: RBC prices $4.58 million contingent income callable notes linked to indexes
By Wendy Van Sickle
Columbus, Ohio, Sept. 21 – Royal Bank of Canada priced $4.58 million of contingent income issuer callable securities due Sept. 19, 2019 linked to the worst performing of the Euro Stoxx 50 index, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon at an annual rate of 10.25% if each index closes at or above its coupon barrier, 85% of its initial index level, on each day during that quarter.
The notes are callable at par on any quarterly determination date.
If each index finishes at or above its 75% downside threshold level, the payout at maturity will be par plus the final contingent coupon, if any. If the final level of any index is less than its downside threshold level, investors will be fully exposed to the decline of the least-performing index.
RBC Capital Markets, LLC is the agent. Distribution is through Morgan Stanley Wealth Management.
Issuer: | Royal Bank of Canada
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Issue: | Contingent income issuer callable securities
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Underlying indexes: | Euro Stoxx 50 index, Russell 2000 index and S&P 500 index
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Amount: | $4,575,000
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Maturity: | Sept. 19, 2019
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Coupon: | 10.25% per year, payable quarterly if each index closes at or above coupon barrier on each day during that quarter
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Price: | Par
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Payout at maturity: | If each index finishes at or above downside threshold level, par plus final contingent coupon, if any; if final level of any index is less than downside threshold level, full exposure to decline of lowest-performing index
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Call option: | At par on any quarterly determination date
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Initial levels: | 3,344.63 for Stoxx, 1,721.719 for Russell and 2,904.98 for S&P
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Coupon barriers: | 2,842.94 for Stoxx, 1,463.461 for Russell and 2,469.23 for S&P, 85% of initial levels
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Trigger levels: | 2,508.47 for Stoxx, 1,219.289 for Russell and 2,187.74 for S&P, 75% 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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Distribution: | Morgan Stanley Wealth Management
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Fees: | 1.5%
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Cusip: | 78013XG36
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