Published on 7/8/2019 in the Prospect News Structured Products Daily.
New Issue: RBC prices $1.23 million contingent coupon barrier notes linked to tech stocks
By Angela McDaniels
Tacoma, Wash., July 8 – Royal Bank of Canada priced $1.23 million of autocallable contingent coupon barrier notes due June 30, 2022 linked to the least 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.
Each quarter, the notes pay a contingent coupon at the rate of 9.75% per year if each stock closes at or above its trigger price, 50% of its initial share price, on the observation date for that quarter.
Beginning Dec. 26, the notes will be automatically called at par if each stock closes at or above its initial share price on any quarterly observation date.
The payout at maturity will be par unless the least-performing stock finishes below its trigger price, in which case investors will lose 1% for every 1% that the least-performing stock declines from the initial share price.
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), Alphabet Inc. (Symbol: GOOG) and Netflix Inc. (Symbol: NFLX)
|
| Amount: | $1,227,000
|
| Maturity: | June 30, 2022
|
| Coupon: | 9.75%, payable quarterly if each stock closes at or above trigger price on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless least-performing stock finishes below trigger price, in which case 1% loss for every 1% that least-performing stock declines from initial share price
|
| Call: | Beginning Dec. 26, automatically at par if each stock closes at or above initial share price on any quarterly observation date
|
| Initial share prices: | $1,897.83 for Amazon, $187.66 for Facebook, $1,080.32 for Alphabet and $362.20 for Netflix
|
| Trigger prices: | $948.92 for Amazon, $93.83 for Facebook, $540.16 for Alphabet and $181.10 for Netflix; 50% of initial share prices
|
| Pricing date: | June 26
|
| Settlement date: | June 28
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| Underwriter: | RBC Capital Markets, LLC
|
| Fees: | 2.25%
|
| Cusip: | 78013XUT3
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