Published on 12/29/2014 in the Prospect News Structured Products Daily.
New Issue: RBC prices $940,000 contingent coupon callable yield notes tied to indexes, ETF
By Marisa Wong
Madison, Wis., Dec. 26 – Royal Bank of Canada priced $940,000 of contingent coupon callable yield notes due Dec. 22, 2017 linked to the worst performing of the Russell 2000 index, the Euro Stoxx 50 index and the iShares MSCI EAFE exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon if each underlying closes at or above its barrier level, 65% of its initial level, on the observation date for that quarter. The contingent coupon rate is 8.3% per year.
The payout at maturity will be par unless any underlying finishes below its barrier level, in which case investors will be fully exposed to the decline of the least-performing underlying.
The notes are callable at par on any interest payment date beginning on March 24.
RBC Capital Markets, LLC and Barclays are the underwriters.
| Issuer: | Royal Bank of Canada
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| Issue: | Contingent coupon callable yield notes
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| Underlyings: | Russell 2000 index, Euro Stoxx 50 index and iShares MSCI EAFE ETF
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| Amount: | $940,000
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| Maturity: | Dec. 22, 2017
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| Coupon: | 8.3% per year, payable quarterly if each underlying closes at or above barrier level on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless any underlying finishes below barrier level, in which case full exposure to decline of least-performing underlying
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| Call option: | At par on any interest payment date beginning on March 24
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| Initial levels: | $61.70 for ETF, 1,195.941 for Russell 2000 and 3,141.28 for Euro Stoxx
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| Barrier levels: | $40.11 for ETF, 777.362 for Russell 2000 and 2,041.83 for Euro Stoxx; 65% of initial levels
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| Pricing date: | Dec. 19
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| Settlement date: | Dec. 24
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| Underwriters: | RBC Capital Markets, LLC and Barclays
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| Fees: | 1.75%
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| Cusip: | 78010U6F9
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