Published on 7/19/2016 in the Prospect News Structured Products Daily.
New Issue: RBC prices $2.03 million contingent coupon barrier autocallables tied to three funds
By Wendy Van Sickle
Columbus, Ohio, July 19 – Royal Bank of Canada priced $2.03 million of autocallable contingent coupon barrier notes due July 19, 2018 linked to the least performing of the iShares NASDAQ Biotechnology exchange-traded fund, the Financial Select Sector SPDR fund and the Technology Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 10.4% if each fund closes at or above its 70% barrier level on an observation date for that quarter.
The notes will be called at par if each fund closes at or above its initial level on any quarterly observation date.
The payout at maturity will be par unless any fund finishes below the 70% barrier level, in which case investors will be fully exposed to the loss of the worst performing fund.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
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| Issue: | Autocallable contingent coupon barrier 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: | $2,027,000
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| Maturity: | July 19, 2018
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| Coupon: | 10.4%, payable quarterly if each fund finishes above barrier level on observation date for that quarter
|
| Price: | Par of $1,000
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| Payout at maturity: | Par unless any fund finishes below barrier, in which case full exposure to loss of worst performing fund
|
| Call: | At par if each fund closes at or above initial level on any quarterly observation date
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| Initial fund levels: | $272.53 for iShares Nasdaq, $23.50 for Financial Select and $45.01 for Technology Select
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| Barrier level: | $190.77 for iShares Nasdaq, $16.45 for Financial Select and $31.51 for Technology Select, 70% of initial prices
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| Pricing date: | July 15
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| Settlement date: | July 20
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| Underwriter: | RBC Capital Markets, LLC
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| Fees: | 1.75%
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| Cusip: | 78012KQW0
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