Published on 12/11/2018 in the Prospect News Structured Products Daily.
New Issue: RBC sells $1.03 million 10.1% contingent income callables tied to three indexes
By Susanna Moon
Chicago, Dec. 11 – Royal Bank of Canada priced $1.03 million of contingent income autocallable securities due Nov. 19, 2020 linked to the worst performing of the Euro Stoxx 50 index, the Russell 2000 index and the S&P 500 index,, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 10.1% if each index closes at or above the 70% downside threshold on the determination date for that quarter.
The notes will be called at par plus the contingent coupon if each index closes at or above its initial level on any determination date.
The payout at maturity will be par unless any underlying index finishes below its 70% downside threshold, in which case investors will lose 1% for each 1% decline of the worst performing index.
RBC Capital Markets, LLC is the agent with Morgan Stanley Wealth Management as dealer.
| Issuer: | Royal Bank of Canada
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| Issue: | Contingent income issuer callable securities
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| Underlying indexes: | S&P 500 index, Russell 2000 index and Euro Stoxx 50 index
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| Amount: | $1,027,000
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| Maturity: | Nov. 19, 2020
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| Coupon: | 10.1% annualized, payable quarterly if each index closes at or above 65% coupon barrier on review date for that quarter
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| Price: | Par
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| Payout at maturity: | If any index finishes at or above 65% downside threshold, par; otherwise, 1% loss for each 1% decline of worst performing index
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| Call option: | At par on any coupon payment date beginning in February 2019
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| Initial levels: | 2,736.27 for S&P, 1,527.533 for Russell and 3,180.74 for Stoxx
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| Coupon barriers: | 2,052.20 for S&P, 1,145.65 for Russell and 2,385.56 | for Stoxx, 75% of initial levels
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| Downside thresholds: | 1,915.39 for S&P, 1,069.273 for Russell and 2,226.52 for Stoxx, 70% of initial levels
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| Pricing date: | Nov. 16
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| Settlement date: | Nov. 21
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| Agent: | RBC Capital Markets, LLC with Morgan Stanley Wealth Management as dealer
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| Fees: | 1.5%
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| Cusip: | 78013XSB5
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