Published on 10/9/2020 in the Prospect News Structured Products Daily.
New Issue: RBC sells $3.72 million callable contingent coupon barrier notes on FedEx
By Wendy Van Sickle
Columbus, Ohio, Oct. 9 – Royal Bank of Canada priced $3.72 million of callable contingent coupon barrier notes due Oct. 5, 2022 linked to the common stock of FedEx Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at an annual rate of 10.15% if the stock closes at or above the 60% coupon barrier price on the observation date for that quarter.
The notes may be called at par plus any contingent coupon on any coupon payment date.
The payout at maturity will be par plus the final coupon unless the stock finishes below the 60% barrier price, in which case investors will receive a number of FedEx shares equal to the principal divided by the initial share price, or, at the issuer’s option, the cash equivalent.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
|
| Issue: | Callable contingent coupon barrier notes
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| Underlying stock: | FedEx Corp.
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| Amount: | $3,717,000
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| Maturity: | Oct. 5, 2022
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| Coupon: | 10.15%, payable quarterly if stock closes at or above coupon barrier price on observation date for that quarter
|
| Price: | Par
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| Payout at maturity: | Par plus final coupon unless stock finishes below trigger price, in which case a number of shares equal to the principal divided by the initial share price, or, at issuer’s option, cash equivalent
|
| Call: | At par plus contingent coupon on any coupon payment date
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| Initial price: | $251.52
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| Coupon/barrier price: | $150.91, 60% of initial price
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| Pricing date: | Sept. 30
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| Settlement date: | Oct. 5
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| Agents: | RBC Capital Markets, LLC
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| Fees: | 1.75%
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| Cusip: | 78013GYH2
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