Published on 1/25/2021 in the Prospect News Structured Products Daily.
New Issue: RBC prices $8.5 million autocallable contingent coupon barrier notes on Russell, S&P
By Taylor Fox
New York, Jan. 25 – Royal Bank of Canada priced $8.5 million of autocallable contingent coupon barrier notes due Dec. 29, 2025 linked to the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon at the rate of 6% per year if the lowest performing index closes at or above its trigger level, 65% of its initial price, on the observation date for that quarter.
The notes will be called at par if the lowest performing index closes at or above its initial level on any quarterly observation date after six months.
If the notes are not called, the payout at maturity will be par unless the lowest performing index finishes below its 65% trigger price, in which case investors will be fully exposed to the decline.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
|
| Issue: | Autocallable contingent coupon barrier notes
|
| Underlying indexes: | S&P 500 index and the Russell 2000 index
|
| Amount: | $8,500,000
|
| Maturity: | Dec. 29, 2025
|
| Coupon: | 6% annual rate, payable quarterly if lowest performing index closes at or above trigger price on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless lowest performing index finishes below trigger price, in which case full exposure to decline
|
| Call: | At par if lowest performing index closes at or above initial index level on any quarterly observation date after six months
|
| Initial levels: | 3,690.01 for S&P and 2,007.104 for Russell
|
| Coupon barrier levels: | 2,398.51 for S&P and 1,304.618 for Russell, 65% of initial levels
|
| Trigger level: | 2,398.51 for S&P and 1,304.618 for Russell, 65% of initial levels
|
| Pricing date: | Dec. 23
|
| Settlement date: | Dec. 29
|
| Underwriter: | RBC Capital Markets, LLC
|
| Fees: | 2.25%
|
| Cusip: | 78016EA72
|
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