Published on 8/5/2019 in the Prospect News Structured Products Daily.
New Issue: RBC sells $500,000 contingent coupon barrier autocalls tied to three ETFs
By Sarah Lizee
Olympia, Wash., Aug. 5 – Royal Bank of Canada priced $500,000 of autocallable contingent coupon barrier notes due July 29, 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
|
| Issue: | Autocallable contingent coupon barrier notes
|
| Underlying ETFs: | Invesco QQQ Trust, Series 1, Financial Select Sector SPDR fund and Utilities Select Sector SPDR fund
|
| Amount: | $500,000
|
| Maturity: | July 29, 2021
|
| Coupon: | 6.75% per year, payable quarterly if each ETF closes at or above trigger level on observation date for that quarter
|
| Price: | Par
|
| 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
|
| Initial share prices: | $193.30 for Invesco, $28.38 for Financial, $59.76 for Utilities
|
| Trigger levels: | $125.65 for Invesco, $18.45 for Financial, $38.84 for Utilities; 65% of initial share prices
|
| Pricing date: | July 26
|
| Settlement date: | July 30
|
| Underwriter: | RBC Capital Markets, LLC
|
| Fees: | 1.15%
|
| Cusip: | 78013XY28
|
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