Published on 4/22/2024 in the Prospect News Structured Products Daily.
New Issue: RBC prices $8.9 million trigger autocallable contingent yield notes on two indexes
By William Gullotti
Buffalo, N.Y., April 22 – Royal Bank of Canada priced $8.9 million of trigger autocallable contingent yield notes due April 22, 2027 linked to the performance of the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at the rate of 8.6% per year if each index closes at or above its coupon barrier, 70% of its initial level, on the related observation date.
The notes will be automatically called at par plus the coupon if each index closes at or above its initial level on any quarterly call observation date after six months.
If the notes are not called and the final level of each index is greater than or equal to the downside threshold level, 70% of the initial level, the payout at maturity will be par plus the final coupon.
Otherwise, investors will lose 1% for every 1% that the worst performer declines from its initial level.
UBS Financial Services LLC and RBC Capital Markets, LLC are the agents.
| Issuer: | Royal Bank of Canada
|
| Issue: | Trigger autocallable contingent yield notes
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| Underlying indexes: | Russell 2000 index, Euro Stoxx 50 index
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| Amount: | $8,896,000
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| Maturity: | April 22, 2027
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| Coupon: | 8.6% per year, paid quarterly if each index closes at or above its coupon barrier on the related observation date
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus final coupon unless any index finishes below downside threshold level, in which case 1% loss for each 1% decline of worst performer from initial level
|
| Call: | Automatically at par plus the coupon if each index closes at or above the initial level on any quarterly call observation date after six months
|
| Initial levels: | 1,947.947 for Russell, 4,914.13 for Stoxx
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| Coupon barrier levels: | 1,363.563 for Russell, 3,439.89 for Stoxx; 70% of initial levels
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| Downside thresholds: | 1,363.563 for Russell, 3,439.89 for Stoxx; 70% of initial levels
|
| Pricing date: | April 17
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| Settlement date: | April 22
|
| Agents: | UBS Financial Services LLC and RBC Capital Markets, LLC
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| Fees: | 2%
|
| Cusip: | 78016R751
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