Published on 4/18/2018 in the Prospect News Structured Products Daily.
New Issue: RBC sells $1.35 million 11.75% contingent rate autocalls on tech stocks
By Susanna Moon
Chicago, April 18 – Royal Bank of Canada priced $1.35 million of autocallable contingent coupon barrier notes due April 16, 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 11.75% 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.
The payout at maturity will be par unless either stock finishes below its 50% trigger level, in which case investors will be fully exposed to any losses of the worse performing stock.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
|
| Issue: | Autocallable contingent coupon barrier notes
|
| Underlying stocks: | Amazon.com, Inc. (Symbol: AMZN), Facebook, Inc. (Symbol: FB), Alphatbet Inc. (Symbol: GOOGL), Netflix, Inc. (Symbol: NFLX)
|
| Amount: | $2,688,000
|
| Maturity: | April 16, 2021
|
| Coupon: | 11.75% annualized, payable quarterly if each stock closes at or above 50% coupon barrier on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless either stock finishes below 50% trigger, in which case 1% loss per 1% decline of worse performing stock
|
| Call: | At par if each stock closes at or above initial level on any quarterly observation date beginning Oct. 15, 2018
|
| Initial levels: | $1,430.79 for Amazon, $164.52 for Facebook, $1,036.04 for Alphabet, $311.65 for Netflix
|
| Trigger levels: | $715.40 for Amazon, $82.26 for Facebook, $518.02 for Alphabet, $155.83 for Netflix, 50% of initial levels
|
| Pricing date: | April 13
|
| Settlement date: | April 18
|
| Agent: | RBC Capital Markets, LLC
|
| Fees: | 2.25%
|
| Cusip: | 78013XKS6
|
|
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
