Published on 6/2/2015 in the Prospect News Structured Products Daily.
New Issue: RBC prices $850,000 contingent coupon callable notes on indexes, ETF
By Toni Weeks
San Luis Obispo, Calif., June 2 – Royal Bank of Canada priced $850,000 of contingent coupon callable yield notes due Dec. 4, 2017 linked to the Russell 2000 index, the S&P 500 index and the iShares MSCI Emerging Markets exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 7.1% if each underlying closes at or above its coupon barrier level, 60% of its initial level, on the observation date for that quarter.
The payout at maturity will be par unless any underlying finishes below its barrier level, 60% of its initial level, in which case investors will be fully exposed to any losses of the worst-performing underlying.
The notes are callable at par on any interest payment date beginning Sept. 3.
RBC Capital Markets, LLC and Barclays are the agents.
| Issuer: | Royal Bank of Canada
|
| Issue: | Contingent coupon callable yield notes
|
| Underlyings: | iShares MSCI Emerging Markets ETF, Russell 2000 index and S&P 500 index
|
| Amount: | $850,000
|
| Maturity: | Dec. 4, 2017
|
| Coupon: | 7.1% annualized, payable quarterly if each underlying closes at or above its barrier level on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless any underlying finishes below its barrier level, in which case par plus return of worst-performing underlying, with full exposure to losses
|
| Call option: | On any contingent coupon payment date beginning Sept. 3
|
| Initial levels: | 1,246.532 for Russell, 2,107.39 for S&P, $41.12 for ETF
|
| Barrier levels: | 747.919 for Russell, 1,264.43 for S&P, $24.67 for ETF; 60% of initial levels
|
| Pricing date: | May 29
|
| Settlement date: | June 3
|
| Agents: | RBC Capital Markets, LLC and Barclays
|
| Fees: | 1.5%
|
| Cusip: | 78012KEQ6
|
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