By Devika Patel
Knoxville, Tenn., Dec. 5 – Royal Bank of Canada priced $3.3 million of autocallable contingent coupon barrier notes due June 1, 2018 linked to the lesser performing of the Energy Select Sector SPDR fund and the Financial Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at an annual rate of 9.896% if each fund closes at or above the 75% barrier level 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 on or after Feb. 28.
The payout at maturity will be par unless either fund finishes below the 75% barrier level, in which case investors will lose 1% for each 1% decline of the lesser-performing fund.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
|
| Issue: | Autocallable contingent coupon barrier notes
|
| Underlying funds: | Energy Select Sector SPDR and Financial Select Sector SPDR
|
| Amount: | $3,304,000
|
| Maturity: | June 1, 2018
|
| Coupon: | 9.896%, payable quarterly if each fund closes at or above barrier level on observation date for that quarter
|
| Price: | Par of $1,000
|
| Payout at maturity: | Par unless either fund finishes below barrier level, in which case 1% loss for each 1% decline of lesser-performing fund
|
| Call: | At par if each fund closes at or above initial price on any quarterly observation date on or after Feb. 28
|
| Initial levels: | $71.71 for Energy Select and $22.15 for Financial Select
|
| Barrier levels: | $53.78 for Energy Select and $16.61 for Financial Select; 75% of initial levels
|
| Pricing date: | Nov. 28
|
| Settlement date: | Nov. 30
|
| Agents: | RBC Capital Markets, LLC
|
| Fees: | 1.75%
|
| Cusip: | 78012KVX2
|
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