By Wendy Van Sickle
Columbus, Ohio, March 28 – Royal Bank of Canada priced $2.24 million of autocallable contingent coupon barrier notes due March 27, 2020 linked to the lesser performing of the SPDR S&P Biotech exchange-traded fund and the Financial Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes pay a contingent quarterly coupon at an annual rate of 9.37% if each fund closes at or above the 60% coupon barrier on the 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 review date.
The payout at maturity will be par unless either fund finishes below its 60% trigger level, in which case investors will be fully exposed to any losses of the worse 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: | SPDR S&P Biotech exchange-traded fund and the Financial Select Sector SPDR fund
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| Amount: | $2.24 million
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| Maturity: | March 27, 2020
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| Coupon: | 9.37%, payable quarterly if each fund closes at or above 60% coupon barrier on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless either fund finishes below trigger level, in which case fully exposed to any losses of worst performing fund
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| Call: | At par if each fund closes at or above initial level on any quarterly observation date
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| Initial levels: | $68.72 for biotech fund, $23.54 for financial fund
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| Trigger levels: | $41.23 for biotech fund, $14.12 for financial fund; 60% of initial levels
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| Pricing date: | March 24
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| Settlement date: | March 31
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| Agents: | RBC Capital Markets, LLC
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| Fees: | 1.85%
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| Cusip: | 78012KF69
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