Published on 4/6/2015 in the Prospect News Structured Products Daily.
New Issue: RBC sells $2.3 million contingent income callable notes on Russell 2000, Euro Stoxx
By Marisa Wong
Madison, Wis., April 6 – Royal Bank of Canada priced $2.3 million of contingent income callable index-linked notes due March 31, 2020 linked to the worst performing of the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
If each index closes at or above its coupon barrier, 60% of its initial level, on a quarterly observation date, investors will receive a contingent coupon at the rate of 6.5% per year.
The notes are callable on any quarterly observation date at par plus accrued interest, if any.
The payout at maturity is par unless either index closes below its 60% barrier level, in which case the payout will be par plus the return of the worst-performing index, with full exposure to losses.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
|
| Issue: | Contingent income callable index-linked notes
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| Underlying indexes: | Russell 2000, Euro Stoxx 50
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| Amount: | $2,301,000
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| Maturity: | March 31, 2020
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| Coupon: | 6.5% per year, payable quarterly if each underlying closes at or above barrier level on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless either index closes below barrier level, in which case full exposure to decline of worst-performing index
|
| Call option: | At par on any quarterly observation date
|
| Initial levels: | 1,240.41 for Russell 2000, 3,679.03 for Euro Stoxx 50
|
| Barrier/trigger levels: | 744.25 for Russell 2000, 2,207.42 for Euro Stoxx 50; 60% of initial levels
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| Pricing date: | March 27
|
| Settlement date: | March 31
|
| Agent: | RBC Capital Markets, LLC
|
| Fees: | 2.25% Cusip: | 78012KCG0
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