Published on 6/12/2017 in the Prospect News Structured Products Daily.
New Issue: RBC sells $2.1 million contingent coupon barrier autocallables on EAFE, EM ETFs
By Marisa Wong
Morgantown, W.Va., June 12 – Royal Bank of Canada priced $2.1 million of autocallable contingent coupon barrier notes due May 29, 2020 linked to the iShares MSCI EAFE exchange-traded fund and the iShares MSCI Emerging Markets ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 6.07% if each fund closes at or above the 75% coupon barrier on the observation date for that quarter.
The notes will be called at par if each fund closes at or above its initial price on any quarterly observation date after one year.
The payout at maturity will be par unless either fund finishes below the 70% trigger level, in which case investors will be fully exposed to any losses of the worse performing fund.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
|
| Issue: | Autocallable contingent coupon barrier notes
|
| Underlying funds: | iShares MSCI EAFE ETF, iShares MSCI Emerging Markets ETF
|
| Amount: | $2.1 million
|
| Maturity: | May 29, 2020
|
| Coupon: | 6.07%, payable quarterly if each fund closes at or above coupon barrier on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless either fund finishes below trigger price, in which case 1% loss for each 1% decline of worse performing fund
|
| Call: | At par if each fund closes at or above initial price on any quarterly observation date beginning May 29, 2018
|
| Initial prices: | $66.05 for EAFE, $41.74 for EM
|
| Coupon barriers: | $49.54 for EAFE, $31.31 for EM; 75% of initial price
|
| Trigger prices: | $46.24 for EAFE, $29.22 for EM, 70% of initial price
|
| Pricing date: | May 26
|
| Settlement date: | May 31
|
| Agents: | RBC Capital Markets, LLC
|
| Fees: | 2.25%
|
| Cusip: | 78012KU70
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
