Published on 10/4/2019 in the Prospect News Structured Products Daily.
New Issue: RBC prices $567,000 contingent coupon barrier notes linked to Home Depot, Lowe’s
By Angela McDaniels
Tacoma, Wash., Oct. 4 – Royal Bank of Canada priced $567,000 of autocallable contingent coupon barrier notes due Sept. 29, 2022 linked to the lesser performing of the common stocks of Home Depot Inc. and Lowe’s Cos., Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 8.5% per year if each stock closes at or above its trigger price, 70% of its initial share price, on the observation date for that quarter.
Beginning March 26, 2020, the notes will be automatically called at par if each stock closes at or above its initial share price on any quarterly observation date.
The payout at maturity will be par unless the lesser-performing stock finishes below its trigger price, in which case investors will lose 1% for every 1% that the lesser-performing stock declines from its initial share price.
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 stocks: | Home Depot Inc. (Symbol: HD) and Lowe’s Cos., Inc. (Symbol: LOW)
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Amount: | $567,000
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Maturity: | Sept. 29, 2022
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Coupon: | 8.5% per year, payable quarterly if each stock closes at or above trigger price on observation date for that quarter
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Price: | Par
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Payout at maturity: | Par unless lesser-performing stock finishes below trigger price, in which case 1% loss for every 1% that lesser-performing declines from initial share price
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Call: | Beginning March 26, 2020, automatically at par if each stock closes at or above initial share price on any quarterly observation date
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Initial share prices: | $229.79 for Home Depot and $110.72 for Lowe’s
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Trigger prices: | $160.85 for Home Depot and $77.50 for Lowe’s, or 70% of initial share prices
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Pricing date: | Sept. 26
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Settlement date: | Sept. 30
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Underwriter: | RBC Capital Markets, LLC
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Fees: | 2.25%
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Cusip: | 78015KGS7
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