By Wendy Van Sickle
Columbus, Ohio, Nov. 24 – Royal Bank of Canada priced $832,200 of trigger autocallable contingent yield notes due Nov. 24, 2023 linked to an equally weighted basket of ETFs, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the Energy Select Sector SPDR fund (50% weight) and the Financial Select Sector SPDR fund (50% weight).
The notes will pay a contingent quarterly coupon at the rate of 9.3% per year if the basket closes at or above its coupon barrier, 75% of its initial level, on the related observation date.
The notes will be automatically called at par plus the coupon if the basket closes at or above its initial level on any quarterly call observation date after six months.
If the notes are not called and the final basket 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 basket declines from its initial level.
UBS Financial Services LLC and RBC Capital Markets, LLC are the agents.
| Issuer: | Royal Bank of Canada
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| Issue: | Trigger autocallable contingent yield notes
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| Underlying ETFs: | Energy Select Sector SPDR fund (50% weight) and Financial Select Sector SPDR fund (50% weight)
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| Amount: | $832,200
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| Maturity: | Nov. 24, 2023
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| Coupon: | 9.3% per year, paid quarterly if the basket closes at or above coupon barrier on the related observation date
|
| Price: | Par of $10
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| Payout at maturity: | Par unless the basket finishes below downside threshold level, in which case 1% loss for each 1% decline from initial level
|
| Call: | Automatically at par plus coupon if the basket closes at or above the initial level on any quarterly call observation date after six months
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| Initial levels: | $54.67 for Energy, $39.02 for Financial
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| Coupon barrier level: | 75% of initial level
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| Downside threshold: | 75% of initial level
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| Pricing date: | Nov. 19
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| Settlement date: | Nov. 24
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| Agents: | UBS Financial Services LLC and RBC Capital Markets, LLC
|
| Fees: | 0%
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| Cusip: | 78014U798
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