By Marisa Wong
Morgantown, W.Va., Jan. 25 – Royal Bank of Canada priced $889,000 of autocallable contingent coupon barrier notes due Jan. 24, 2020 linked to the least performing of three exchange-traded funds, according to a 424B2 filing with the Securities and Exchange Commission.
The underlying components are the Energy Select Sector SPDR fund, the Financial Select Sector SPDR fund and the Health Care Select Sector SPDR fund.
The notes will pay a contingent quarterly coupon at an annual rate of 8.4% if each fund closes at or above the 65% 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 after one year.
The payout at maturity will be par unless any fund finishes below the 65% trigger level, in which case investors will lose 1% for each 1% decline 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: | Energy Select Sector SPDR fund, Financial Select Sector SPDR fund and Health Care Select Sector SPDR fund
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| Amount: | $889,000
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| Maturity: | Jan. 24, 2020
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| Coupon: | 8.4%, payable on a quarter if each fund closes at or above barrier level 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 beginning Jan. 22, 2018
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| Initial levels: | $74.54 for energy fund, $23.15 for financial fund and $69.84 for health care fund
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| Barrier/trigger levels: | $48.45 for energy fund, $15.05 for financial fund and $45.40 for health care fund; 65% of initial levels
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| Pricing date: | Jan. 20
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| Settlement date: | Jan. 25
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 2.25%
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| Cusip: | 78012KYN1
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