Published on 9/5/2018 in the Prospect News Structured Products Daily.
New Issue: RBC sells $5 million of 8% contingent coupon autocalls on indexes, fund
By Susanna Moon
Chicago, Sept. 5 – Royal Bank of Canada priced $5 million of autocallable contingent coupon barrier notes due Sept. 1, 2020 linked to the least performing of the Financial Select Sector SPDR Fund, the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 8% if each underlying asset closes at or above its 70% coupon barrier on the observation date for that quarter.
The notes will be called at par if each asset closes at or above its initial level on any quarterly observation date.
The payout at maturity will be par unless any underlying asset finishes below its 70% trigger level, in which case the payout will be par plus the return of the worst performing index or fund with full exposure to any losses.
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 assets: | Financial Select Sector SPDR Fund, S&P 500 index and Russell 2000 index
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| Amount: | $5 million
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| Maturity: | Sept. 1, 2020
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| Coupon: | 8% annualized, payable quarterly if each underlying asset closes at or above 70% coupon barrier on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless any underlying asset finishes below 70% trigger, in which case 1% loss per 1% decline of worse performing index or fund
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| Call: | At par if each index or fund closes at or above initial level on any quarterly observation date
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| Initial levels: | $28.64 for financial fund, 2,896.87 for S&P and 1,730.57 for Russell
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| Barrier levels: | $20.05 for financial fund, 2,027.81 for S&P and 1,211.399 for Russell, 70% of initial levels
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| Pricing date: | Aug. 27
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| Settlement date: | Sept. 4
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 0.5%
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| Cusip: | 78013XC97
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