Published on 12/26/2017 in the Prospect News Structured Products Daily.
New Issue: RBC sells $1.26 million of 9.1% contingent coupon autocallables tied to tech stocks
By Susanna Moon
Chicago, Dec. 22 – Royal Bank of Canada priced $1.26 million of autocallable contingent coupon barrier notes due Dec. 16, 2020 linked to the lesser performing of the common stocks of Amazon.com, Inc., Facebook, Inc., Alphabet Inc. and Netflix Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes pay a contingent quarterly coupon at an annual rate of 9.1% if each stock closes at or above its 50% 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 after six months.
The payout at maturity will be par unless any stock finishes below its 50% 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 stocks: | Amazon.com, Inc. (Symbol: AMZN), Facebook, Inc. (Symbol: FB), Alphabet Inc. (Symbol: GOOGL) and Netflix Inc. (Symbol: NFLX)
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| Amount: | $1,255,000
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| Maturity: | Dec. 16, 2020
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| Coupon: | 9.1% annualized, payable quarterly if each stock closes at or above 50% 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 50% trigger, in which case 1% loss per 1% decline of worst performing index
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| Call: | At par if each stock closes at or above initial level on any quarterly observation date beginning June 11, 2018
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| Initial levels: | $1,168.92 for Amazon, $179.04 for Facebook, $1,051.97 for Alphabet and $186.22 for Netflix
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| Trigger levels: | $584.46 for Amazon, $89.52 for Facebook, $525.99 for Alphabet and $93.11 for Netflix; 50% of initial levels
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| Pricing date: | Dec. 11
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| Settlement date: | Dec. 14
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| Underwriter: | RBC Capital Markets, LLC
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| Fees: | 2.25%
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| Cusip: | 78013XBG2
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