Published on 4/23/2019 in the Prospect News Structured Products Daily.
New Issue: RBC sells $700,000 contingent coupon barrier autocalls on three ETFs
By Wendy Van Sickle
Columbus, Ohio, April 23 – Royal Bank of Canada priced $700,000 of autocallable contingent coupon barrier notes due April 22, 2021 linked to the least performing of the Invesco QQQ Trust, series 1, the Financial Select Sector SPDR fund and the Utilities Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon at an annual rate of 6.75% if each ETF closes at or above its trigger level, 65% of its initial share price, on the observation date for that quarter.
The notes will be called at par if each ETF closes at or above its initial share price on any quarterly observation date.
The payout at maturity will be par unless any ETF finishes below its trigger level, in which case investors will be exposed to the decline of the least-performing ETF from its initial share price.
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 ETFs: | Invesco QQQ Trust, series 1, Financial Select Sector SPDR fund and Utilities Select Sector SPDR fund
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| Amount: | $700,000
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| Maturity: | April 22, 2021
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| Coupon: | 6.75% per year, payable quarterly if each ETF closes at or above trigger level on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless any ETF finishes below trigger level, in which case full exposure to decline of least-performing ETF from initial share price
|
| Call: | At par if each ETF closes at or above initial share price on any quarterly observation date
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| Initial share prices: | $187.39 for QQQ, $27.34 for financial fund and $57.29 for utilities fund
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| Trigger levels: | $121.80 for QQQ, $17.77 for financial fund and $37.24 for utilities fund; 65% of initial share prices
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| Pricing date: | April 18
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| Settlement date: | April 24
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| Underwriter: | RBC Capital Markets, LLC
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| Fees: | 1.75%
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| Cusip: | 78013X5T1
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