Published on 8/10/2022 in the Prospect News Structured Products Daily.
New Issue: RBC sells $1.22 million call warrants linked to five stocks
By Wendy Van Sickle
Columbus, Ohio, Aug. 10 – Royal Bank of Canada priced $1.22 million of call warrants expiring July 22, 2024 linked to a basket of five stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The basket includes equal weights of APA Corp., ConocoPhillips, Hess Corp., Cheniere Energy, Inc. and Murphy Oil Corp.
The 4,960 warrants have a notional amount of $1,000 each, or $4.96 million in total, and sold for $246.25 each, or 24.625% of the notional amount. The minimum purchase requirement is 120 warrants.
The warrants will be automatically exercised on the expiration date. If the final basket level is greater than the call strike threshold, 100% of the initial basket level, the cash settlement amount per warrant will be $1,000 multiplied by the basket gain up to 85%. If the final basket level is less than or equal to the call strike threshold, the cash settlement amount will be zero.
J.P. Morgan Securities LLC and JPMorgan Chase Bank, NA are the placement agents.
| Issuer: | Royal Bank of Canada
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| Issue: | Call warrants
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| Underlying stocks: | APA Corp. (Symbol: APA), ConocoPhillips (Symbol: COP), Hess Corp. (Symbol: HES), Cheniere Energy, Inc. (Symbol: LNG) and Murphy Oil Corp. (Symbol: MUR); equally weighted
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| Warrants: | 4,960
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| Notional amount: | $1,000 each, or $4.96 million total
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| Price: | $246.25 each, or $1,221,400 total
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| Maturity date: | July 22, 2024
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| Payout: | If final basket level is greater than call strike threshold, (a) $1,000 multiplied by (b) the basket return up to 85%; if the final basket level is less than or equal to the call strike threshold, zero
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| Call strike threshold: | 100% of the initial basket level
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| Initial prices: | $33.29 for APA, $88.93 for ConocoPhillips, $103.36 for Hess, $137.22 for Cheniere, $30.83 for Murphy
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| Pricing date: | July 22
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| Settlement date: | July 27
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| Agents: | J.P. Morgan Securities LLC and JPMorgan Chase Bank, NA
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| Fees: | $6.25 per warrant
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| Cusip: | 78014N141
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