RBC plans trigger autocallable contingent yield notes on index, ETF

By Sarah Lizee

Olympia, Wash., July 22 – Royal Bank of Canada plans to price 0% trigger autocallable contingent yield notes due Aug. 3, 2022 linked to the iShares MSCI Emerging Markets exchange-traded fund and the Hang Seng China Enterprises index, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of between 6.1% and 7.1% if each asset closes at or above its coupon barrier, 70% of its initial level, on the observation date for that quarter. The exact coupon will be set at pricing.

The notes will be called at par of $10 if each asset closes at or above its initial level on any quarterly observation date other than the final one, beginning after six months.

The payout at maturity will be par plus the final coupon unless either asset finishes below the downside threshold level, 70% of the initial level, in which case investors will lose 1% for every 1% loss of the worse performing asset from its initial level.

UBS Financial Services Inc. and RBC Capital Markets, LLC are the agents.

The notes (Cusip: 78014J215) will price on July 29.

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