By Susanna Moon
Chicago, June 17 – Royal Bank of Canada priced $3.85 million of trigger phoenix autocallable notes due June 14, 2018 linked to the worst performing of the iShares Nasdaq Biotechnology exchange traded fund, Financial Select Sector SPDR fund and Technology Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon of 9.95% per year if each underlying fund closes at or above its coupon barrier level, 65% of its initial price, on the observation date for that quarter.
The notes will be called at par if each fund closes at or above its initial price on any quarterly observation date.
The payout at maturity will be par plus the final contingent coupon unless any fund finishes below its 65% trigger level, in which case investors will be fully exposed to any losses of the worst performing fund.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
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| Issue: | Trigger phoenix autocallable notes
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| Underlying funds: | iShares Nasdaq Biotechnology ETF, Financial Select Sector SPDR fund and Technology Select Sector SPDR fund
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| Amount: | $3,853,000
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| Maturity: | June 14, 2018
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| Coupon: | 9.95% annualized, payable quarterly if each fund closes at or above 65% coupon barrier on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless any fund finishes below trigger level, in which case full exposure to any losses of worst performing fund
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| Call: | At par if each fund closes at or above initial price on any quarterly observation date
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| Initial levels: | $267.60 for Nasdaq biotech fund, $23.18 for financial fund and $43.96 for tech fund
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| Trigger levels: | $173.94 for Nasdaq biotech fund, $15.07 for financial fund and $28.57 for tech fund; 65% of initial levels
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| Pricing date: | June 10
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| Settlement date: | June 14
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| Agent: | RBC Capital Markets LLC
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| Fees: | 1.75%
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| Cusip: | 78012KQE0
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