By Kiku Steinfeld
Chicago, Sept. 13 – Royal Bank of Canada priced $1 million of issuer callable contingent coupon barrier notes due July 5, 2023 linked to the Financial Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon at the rate of 7% per year if the fund closes at or above its trigger price, 80% of its initial share price, on the observation date for that quarter.
The notes are callable at par on any quarterly coupon payment date other than the final coupon payment date.
The payout at maturity will be par unless the fund finishes below its trigger price, in which case the payout will be a number of shares equal to $1,000 divided by the initial share price or, at the issuer’s option, an amount in cash equal to the value of those shares.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
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| Issue: | Issuer callable contingent coupon barrier notes
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| Underlying fund: | Financial Select Sector SPDR fund
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| Amount: | $1 million
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| Maturity: | July 5, 2023
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| Coupon: | 7%, payable quarterly if fund closes at or above trigger price on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless fund finishes below trigger price, in which case 27.37 Financial Select Sector shares or, at issuer’s option, amount in cash equal to value of those shares
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| Call option: | At par on any quarterly coupon payment date other than final coupon payment date
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| Initial share price: | $36.53
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| Trigger price: | $29.22, 80% of initial share price
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| Pricing date: | June 29
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| Settlement date: | July 2
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 0.85%
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| Cusip: | 78013GU29
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