Chicago, May 3 – Royal Bank of Canada priced $1 million issuer callable contingent coupon barrier notes due March 22, 2023 tied to the Financial Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly contingent coupon at an annual rate of 9.25% if the fund closes above its 80% coupon barrier on the observation date for that quarter.
The notes may be called at par plus any coupon due at the option of the issuer on any quarterly coupon payment date.
Investors will receive par plus the contingent coupon if the final level of the fund is above its 80% trigger level.
Otherwise, investors will be fully exposed to the losses of the underlier, payable either in shares or cash at the issuer’s option.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
|
| Issue: | Issuer callable contingent coupon barrier note
|
| Underlying fund: | Financial Select Sector SPDR Fund
|
| Amount: | $1 million
|
| Maturity: | March 22, 2023
|
| Coupon: | 9.25% annual rate, paid quarterly if fund closes above coupon barrier on related observation date
|
| Price: | Par
|
| Payout at maturity: | Par plus contingent coupon unless fund closes below trigger level, in which case full exposure to losses, payable either in shares or cash at issuer’s option
|
| Call option: | At par plus any coupon due at the option of the issuer on any quarterly coupon payment date
|
| Initial level: | $34.44
|
| Coupon barrier level: | $27.55, 80% of initial levels
|
| Trigger level: | $27.55, 80% of initial levels
|
| Pricing date: | March 17
|
| Settlement date: | March 22
|
| Agent: | RBC Capital Markets, LLC
|
| Fees: | 1%
|
| Cusip: | 78013GK87
|
© 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.
