Published on 10/18/2019 in the Prospect News Structured Products Daily.
New Issue: RBC sells $1.17 million contingent coupon barrier autocalls on two stocks
By Sarah Lizee
Olympia, Wash., Oct. 18 – Royal Bank of Canada priced $1.17 million of autocallable contingent coupon barrier notes due Oct. 20, 2022 linked to the least performing of the stocks of CVS Health Corp. and Walgreens Boots Alliance, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly coupon at an annual rate of 9.25% if both stocks close at or above their coupon barriers, 60% of their initial prices, on the applicable quarterly observation date.
The notes will be called at par plus the coupon if each stock closes at or above its initial price on any quarterly observation date starting April 16, 2020.
The payout at maturity will be par unless either stock finishes below its 60% trigger price, in which case investors will be fully exposed to the decline of the lesser performing stock.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
|
| Issue: | Autocallable contingent coupon barrier notes
|
| Underlying stocks: | CVS Health Corp. and Walgreens Boots Alliance, Inc.
|
| Amount: | $1,172,000
|
| Maturity: | Oct. 20, 2022
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| Coupon: | 9.25%, payable quarterly if each stock closes at or above coupon barrier on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless either stock finishes below trigger price, in which case investors will be fully exposed to the decline of the lesser performing stock
|
| Call: | Automatically at par plus the coupon if each stock closes at or above initial price on any quarterly observation date starting April 16, 2020
|
| Initial prices: | $65.41 for CVS, $54.66 for Walgreens
|
| Coupon barriers: | $39.25 for CVS, $32.80 for Walgreens; 60% of initial prices
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| Trigger prices: | $39.25 for CVS, $32.80 for Walgreens; 60% of initial prices
|
| Pricing date: | Oct. 16
|
| Settlement date: | Oct. 21
|
| Agent: | RBC Capital Markets, LLC
|
| Fees: | 2.25%
|
| Cusip: | 78015KCK8
|
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