Published on 7/18/2017 in the Prospect News Structured Products Daily.
New Issue: RBC sells $1.06 million autocallable contingent coupon barrier notes on two ETFs
New York, July 18 – Royal Bank of Canada priced $1.06 million of autocallable contingent coupon barrier notes due July 19, 2022 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 will pay a quarterly coupon at an annual rate of 7.8% if each fund closes above its coupon barrier level, 7060of its initial price, on the observation date for that quarter.
The notes will be called at par the coupon if each fund closes above its initial price on any quarterly observation date, starting Jan. 16, 2018.
The payout at maturity will be par plus the final coupon unless either fund finishes below the 60% trigger price, in which case investors will lose 1% for each 1% that the lesser-performing fund’s final level is less than its initial level.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
|
| Issue: | Autocallable contingent coupon barrier notes
|
| Underlying ETFs: | SPDR S&P Biotech exchange-traded fund, Financial Select Sector SDDR fund
|
| Amount: | $1,063,000
|
| Maturity: | July 19, 2022
|
| Coupon: | 7.8%, payable quarterly if each fund closes at or above coupon barrier level on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless either fund finishes below trigger price, in which case investors will lose 1% for each 1% that the lesser-performing fund’s final level is less than its initial level
|
| Call: | Beginning Jan. 16, 2018, at par if each fund closes at or above initial share price on any quarterly observation date
|
| Initial fund prices: | $79.07 for SPDR Biotech, $24.92 for Financial Select SPDR
|
| Coupon barrier/trigger prices: | $47.44 for SPDR Biotech, $14.95 for Financial Select SPDR; 60% of initial stock prices
|
| Pricing date: | July 14
|
| Settlement date: | July 19
|
| Underwriter: | RBC Capital Markets, LLC
|
| Fees: | 2.75%
|
| Cusip: | 78012K2F3
|
|
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
