Published on 9/21/2018 in the Prospect News Structured Products Daily.
New Issue: RBC sells $1.55 million 9.3% contingent coupon autocalls tied to three stocks
By Susanna Moon
Chicago, Sept. 21 – Royal Bank of Canada priced $1.55 million of autocallable contingent coupon barrier notes due Sept. 14, 2023 linked to the least performing of the common stocks of AbbVie Inc., Eli Lilly & Co. and Merck & Co., Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes pay a contingent quarterly coupon at an annual rate of 9.3% if each stock closes at or above its 60% coupon barrier on the observation date for that quarter.
The notes will be called at par if each stock closes at or above its initial level on any quarterly observation date.
The payout at maturity will be par unless either stock finishes below its 60% trigger level, in which case investors will be fully exposed to any losses of the worse performing stock.
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 assets: | AbbVie Inc. (Symbol: ABBV), Eli Lilly & Co. (Symbol: LLY) and Merck & Co., Inc. (Symbol: MRK)
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| Amount: | $1,554,000
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| Maturity: | Sept. 14, 2023
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| Coupon: | 9.3% annualized, payable quarterly if each stock closes at or above 60% coupon barrier on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless either stock finishes below 60% trigger, in which case 1% loss per 1% decline of worse performing stock
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| Call: | At par if each stock closes at or above initial level on any quarterly observation date beginning Sept. 10, 2019
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| Initial levels: | $93.82 for AbbVie, $106.42 for Eli Lilly, $69.56 for Merck
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| Barrier levels: | $56.29 for AbbVie, $63.85 for Eli Lilly, $41.74 for Merck, 60% of initial levels
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| Pricing date: | Sept. 10
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| Settlement date: | Sept. 13
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 3.25%
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| Cusip: | 78013XD96
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