By Taylor Fox
New York, Nov. 23 – Royal Bank of Canada priced $1.19 million issuer callable contingent coupon barrier notes due Nov. 16, 2022 tied to the Energy Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly contingent coupon at an annual rate of 10.25% if the fund closes above its 65% coupon barrier on the observation date for that quarter.
The notes may be called at par plus any coupon due at the option of the issuer on any quarterly coupon payment date.
Investors will receive par plus the contingent coupon if the final level of the fund is above its 65% trigger level.
Otherwise, investors will be fully exposed to the losses of the underlier.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
|
| Issue: | Issuer callable contingent coupon barrier note
|
| Underlying fund: | Energy Select Sector SPDR fund
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| Amount: | $1,185,000
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| Maturity: | Nov. 16, 2022
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| Coupon: | 10.25% annual rate, paid quarterly if fund closes above coupon barrier on related observation date
|
| Price: | Par
|
| Payout at maturity: | Par plus contingent coupon unless fund closes below trigger level, in which case full exposure to losses
|
| Call option: | At par plus any coupon due at the option of the issuer on any quarterly coupon payment date
|
| Initial level: | $34.13
|
| Coupon barrier level: | $22.18, 65% of initial levels
|
| Trigger level: | $22.18, 65% of initial levels
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| Pricing date: | Nov. 10
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| Settlement date: | Nov. 16
|
| Agent: | RBC Capital Markets, LLC
|
| Fees: | 1.5%
|
| Cusip: | 78013GYU3
|
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