By Tali Rackner
Minneapolis, Feb. 1 – Royal Bank of Canada priced $564,000 of autocallable contingent coupon barrier notes due Jan. 29, 2021 linked to 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 contingent quarterly coupon at an annual rate of 9% if each underlying fund closes at or above its 75% coupon barrier on any determination date for that quarter.
The notes will be called at par if each fund closes at or above its initial price on any coupon payment date after six months.
The payout at maturity will be par plus the contingent coupon unless either fund finishes below the 75% trigger price, in which case investors will be fully exposed to any losses of the lesser-performing fund.
RBC Capital Markets, LLC is the agent.
| 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 Financial Select Sector SPDR Fund
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| Amount: | $564,000
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| Maturity: | Jan. 29, 2021
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| Coupon: | 9%, payable quarterly if each fund closes at or above coupon barrier on observation date for that quarter
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| Price: | Par of $1,000
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| Payout at maturity: | Par plus contingent coupon unless either fund finishes below trigger price, in which case par plus return of the lesser-performing fund
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| Call: | At par if each fund closes above initial price on any observation date on or after July 26, 2018
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| Initial prices: | $96.19 for SPDR S&P Biotech and $30.170 for Financial Select
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| Coupon barrier/triggers: | $72.14 for SPDR S&P Biotech and $22.63 for Financial Select; 75% of initial prices
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| Pricing date: | Jan. 26
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| Settlement date: | Jan. 31
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 2.25%
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| Cusip: | 78013XEE4
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