Published on 11/18/2014 in the Prospect News Structured Products Daily.
New Issue: RBC prices $1 million trigger phoenix autocallables linked to three indexes
By Susanna Moon
Chicago, Nov. 18 – Royal Bank of Canada priced $1 million of trigger phoenix autocallable notes due Aug. 25, 2019 linked to the worst performing of the S&P 500 index, the Euro Stoxx 50 index and the FTSE 100 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent semiannual coupon at an annual rate of 7% if each index closes at or above its barrier level, 70% of its initial level, on an observation date for that period.
If each index closes at or above its initial level on any semiannual observation date, the notes will be called at par plus the contingent coupon.
If the notes are not called, the payout at maturity will be par plus the contingent coupon unless the final level of any index is less than its barrier level, in which case investors will fully exposed to any losses of the worst performing index.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
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| Issue: | Trigger phoenix autocallable notes
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| Underlying indexes: | S&P 500 index, Euro Stoxx 50 and FTSE 100
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| Amount: | $1 million
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| Maturity: | Nov. 17, 2017
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| Coupon: | 7% annualized for each semiannual period that both indexes close at or above barrier level on observation date for that period
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above barrier level, par plus contingent coupon; otherwise, full exposure to any losses of worst performing index
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| Call: | At par plus contingent coupon if each index closes at or above initial level on any semiannual observation date
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| Initial index levels: | 2,039.82 for S&P, 3,059.99 for Euro Stoxx and 6,654.37 for FTSE
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| Barrier levels: | 1,427.87 for S&P, 2,141.99 for Euro Stoxx and 4,658.06 for FTSE; 70% of initial levels
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| Pricing date: | Nov. 14
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| Settlement date: | Nov. 19
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| Underwriter: | RBC Capital Markets, LLC
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| Fees: | 1.25%
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| Cusip: | 78010U5X1
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