Published on 3/14/2018 in the Prospect News Structured Products Daily.
New Issue: RBC prices $2.73 million 10.7% contingent coupon autocalls tied to four tech stocks
By Susanna Moon
Chicago, March 14 – Royal Bank of Canada priced $2.73 million of autocallable contingent coupon barrier notes due March 3, 2021 linked to the least performing of the class A common stock of Facebook, Inc., the common stocks of Amazon.com, Inc. and Netflix, Inc. and the class C common stock of Alphabet Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes pay a contingent quarterly coupon at an annual rate of 10.7% 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: | Facebook, Inc. (Symbol: FB), Amazon.com, Inc. (Symbol: AMZN), Netflix, Inc. | (Symbol: NFLX) and Alphabet Inc. (Symbol: GOOG)
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| Amount: | $2,727,000
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| Maturity: | March 3, 2021
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| Coupon: | 10.7% 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 Aug. 27, 2018
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| Initial levels: | $184.93 for Facebook, $1,521.95 for Amazon, $294.16 for Netflix and $1,143.70 for Alphabet
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| Trigger levels: | 50% of initial levels
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| Pricing date: | Feb. 26
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| Settlement date: | Feb. 28
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 2.25%
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| Cusip: | 78013XDH8
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