Published on 5/16/2022 in the Prospect News Structured Products Daily.
New Issue: RBC prices $750,000 autocallable contingent coupon geared buffered notes on index, ETF
By William Gullotti
Buffalo, N.Y., May 16 – Royal Bank of Canada priced $750,000 of autocallable contingent coupon geared buffered notes due Oct. 9, 2024 linked to the performance of the Financial Select Sector SPDR Fund and the Euro Stoxx Banks index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at the rate of 13% if each underlier closes at or above the coupon barrier, 80% of its initial level, on the immediately preceding observation date.
The notes will be automatically called at par plus the coupon if each underlier closes at or above its initial level on any quarterly observation date.
If each underlier finishes at or above the buffer level, 80% of initial level, the payout at maturity will be par plus the final coupon.
Otherwise, investors will lose 1.25% for every 1% that the worst performer declines beyond 20%.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
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| Issue: | Autocallable contingent coupon geared buffered notes
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| Underlying assets: | Financial Select Sector SPDR Fund, Euro Stoxx Banks index
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| Amount: | $750,000
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| Maturity: | Oct. 9, 2024
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| Coupon: | 13%, payable quarterly if each underlier closes at or above coupon barrier on the corresponding observation date
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| Price: | Par
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| Payout at maturity: | If each underlier finishes at or above buffer level, par; otherwise, 1.25% loss for every 1% that the worst performer declines beyond 20%
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| Call: | Automatically at par plus coupon if each underlier closes at or above initial level on any quarterly observation date
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| Initial levels: | $37.82 for ETF, 98.02 for index
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| Coupon barriers: | $30.26 for ETF, 78.42 for index; 80% of initial levels
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| Buffer levels: | $30.26 for ETF, 78.42 for index; 80% of initial levels
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| Pricing date: | Oct. 4, 2021
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| Settlement date: | Oct. 7, 2021
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| Underwriter: | RBC Capital Markets, LLC
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| Fees: | 1%
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| Cusip: | 78016F2Q6
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