By Angela McDaniels
Tacoma, Wash., Dec. 6 – 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 pay a contingent coupon at an annual rate of 9.896% if each ETF closes at or above its trigger level, 75% of its initial share price, on the observation date for that quarter.
The notes will be called at par if each ETF closes at or above its initial share price on any quarterly observation date.
The payout at maturity will be par unless either ETF finishes below its trigger level, in which case investors will be exposed to the decline of the lesser-performing ETF from its initial share price.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
|
| Issue: | Autocallable contingent coupon barrier notes
|
| Underlying ETFs: Energy Select Sector SPDR fund and Financial Select Sector SPDR fund
|
| Amount: | $3,304,000
|
| Maturity: | June 1, 2018
|
| Coupon: | 9.896%, payable quarterly if each ETF closes at or above trigger level on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless either ETF finishes below trigger level, in which case full exposure to decline of lesser-performing ETF from initial share price
|
| Call: | At par if each ETF closes at or above initial share price on any quarterly observation date
|
| Initial share prices: | $71.71 for energy fund and $22.15 for financial fund
|
| Trigger levels: | $53.78 for energy fund and $16.16 for financial fund, or 75% of initial share prices
|
| Pricing date: | Nov. 28
|
| Settlement date: | Nov. 30
|
| Underwriter: | RBC Capital Markets, LLC
|
| Fees: | 1.75%
|
| Cusip: | 78012KVX2
|
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