Published on 2/26/2015 in the Prospect News Structured Products Daily.
New Issue: RBC prices $4.6 million contingent coupon callable yield notes linked to indexes
By Angela McDaniels
Tacoma, Wash., Feb. 26 – Royal Bank of Canada priced $4.6 million of contingent coupon callable yield notes due Feb. 28, 2017 linked to the worst performing of the S&P 500 index, the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon at the rate of 10% per year if each index closes at or above its barrier level, 70% of its initial level, on the observation date for that quarter.
The payout at maturity will be par unless any index finishes below its barrier level, in which case investors will be fully exposed to the decline of the worst-performing index.
The notes are callable at par on any interest payment date.
RBC Capital Markets, LLC and Barclays are the agents.
| Issuer: | Royal Bank of Canada
|
| Issue: | Contingent coupon callable yield notes
|
| Underlying indexes: | S&P 500, Russell 2000 and Euro Stoxx 50
|
| Amount: | $4,602,000
|
| Maturity: | Feb. 28, 2017
|
| Coupon: | 10% per year, payable quarterly if each index closes at or above barrier level on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless any index finishes below barrier level, in which case full exposure to decline of least-performing index
|
| Call option: | At par on any interest payment date
|
| Initial index levels: | 2,113.86 for S&P 500, 1,235.10 for Russell 2000 and 3,541.78 for Euro Stoxx 50
|
| Barrier levels: | 1,479.70 for S&P 500, 864.57 for Russell 2000 and 2,479.25 for Euro Stoxx 50; 70% of initial levels
|
| Pricing date: | Feb. 25
|
| Settlement date: | Feb. 27
|
| Agents: | RBC Capital Markets, LLC and Barclays
|
| Fees: | 1.75%
|
| Cusip: | 78012KBD8
|
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