By Wendy Van Sickle
Columbus, Ohio, April 14 – Royal Bank of Canada priced $3.36 million of trigger autocallable contingent yield notes due March 30, 2023 linked to an equally weighted basket of the Energy Select Sector SPDR fund and the Financial Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 10.2% per year if the basket closes at or above the coupon barrier, 75% of the initial level, on the observation date for that period.
The notes will be automatically called at par if the basket closes at or above the initial level on any quarterly observation date after six months.
If the notes are not called and the final level is greater than or equal to the downside threshold level, 75% of the initial level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the final level is less than the initial level.
UBS Financial Services Inc. and RBC Capital Markets, LLC are the agents.
| Issuer: | Royal Bank of Canada
|
| Issue: | Trigger autocallable contingent yield notes
|
| Underlying basket: | Energy Select Sector SPDR fund and Financial Select Sector SPDR fund, equal weights
|
| Amount: | $3,362,500
|
| Maturity: | March 30, 2023
|
| Contingent coupon: | 10.2% annual rate, payable quarterly if basket closes at or above coupon barrier on related observation date
|
| Price: | Par
|
| Payout at maturity: | Par unless basket finishes below downside threshold, in which case 1% loss for each 1% decline from initial level
|
| Call: | Automatically at par if basket closes at or above initial level on any quarterly observation date after six months
|
| Initial level: | $50.43 for Energy, $34.37 for Financial
|
| Coupon barrier: | 75% of initial level
|
| Downside threshold: | 75% of initial level
|
| Pricing date: | March 26
|
| Settlement date: | March 31
|
| Agents: | UBS Financial Services Inc. and RBC Capital Markets, LLC
|
| Fees: | 0%
|
| Cusip: | 77514M739
|
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