Published on 3/5/2019 in the Prospect News Structured Products Daily.
New Issue: RBC prices $1.7 million contingent memory coupon autocalls tied to ETFs
By Sarah Lizee
Olympia, Wash., March 5 – Royal Bank of Canada priced $1.7 million of contingent coupon barrier notes with memory coupon due March 4, 2021 linked the iShares MSCI Emerging Markets ETF, the Health Care Select Sector SPDR fund and the SPDR S&P Oil & Gas Exploration & Production ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes pay a contingent quarterly coupon at an annual rate of 10.2% if each ETF closes at or above its 70% coupon barrier on the observation date for that quarter, plus any previously unpaid contingent interest payments.
The payout at maturity will be par unless any ETF finishes below its 70% trigger level, in which case investors will be fully exposed to any losses of the least performing ETF.
RBC Capital Markets, LLC is the underwriter. JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC are placement agents.
| Issuer: | Royal Bank of Canada
|
| Issue: | Contingent coupon barrier notes with memory coupon
|
| Underlying ETFs: | iShares MSCI Emerging Markets ETF, the Health Care Select Sector SPDR fund and the SPDR S&P Oil & Gas Exploration & Production ETF
|
| Amount: | $1,695,000
|
| Maturity: | March 4, 2021
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| Coupon: | 10.2%, payable quarterly if each ETF closes at or above coupon barrier on observation date for that quarter, plus any previously unpaid contingent interest payments
|
| Price: | Par
|
| Payout at maturity: | Par unless any ETF finishes below trigger level, in which case investors will be fully exposed to any losses of the least performing ETF
|
| Initial levels: | $42.49 for EM ETF, $92.95 for Health Care ETF, $30.41 for oil & gas ETF
|
| Trigger/coupon barriers: | $29.74 for EM ETF, $65.07 for Health Care ETF, $65.07 for oil & gas ETF, 70% of initial levels
|
| Pricing date: | March 1
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| Settlement date: | March 6
|
| Agent: | RBC Capital Markets, LLC with JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC are placement agents
|
| Fees: | 1.5%
|
| Cusip: | 78013X2P2
|
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