Published on 10/29/2015 in the Prospect News Structured Products Daily.
New Issue: RBC prices $2 million trigger phoenix autocallables linked to S&P, Russell
By Angela McDaniels
Tacoma, Wash., Oct. 29 – Royal Bank of Canada priced $2 million of trigger phoenix autocallable notes due Feb. 3, 2017 linked to the lesser performing of the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes will pay a contingent coupon at an annual rate of 7.35% if each index closes at or above its coupon barrier level, 70% of its initial level, on the observation date for that month.
The notes will be called at par if each index closes at or above its initial level on any quarterly call observation date.
If the notes are not called and each index finishes at or above its 70% trigger level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will be exposed to the decline of the lesser-performing index.
RBC Capital Markets LLC is the agent.
| Issuer: | Royal Bank of Canada
|
| Issue: | Trigger phoenix autocallable notes
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| Underlying indexes: | Russell 2000 and S&P 500
|
| Amount: | $2 million
|
| Maturity: | Feb. 3, 2017
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| Coupon: | 7.35% per year, payable monthly if each index closes at or above barrier level on observation date for that month
|
| Price: | Par
|
| Payout at maturity: | Par plus contingent coupon if each index finishes at or above trigger level; otherwise, full exposure to decline of lesser-performing index
|
| Call: | Automatically at par plus contingent coupon if both indexes close at or above initial levels on Jan. 27, 2016, April 27, 2016, July 27, 2016, Oct. 27, 2016 or Jan. 27, 2017
|
| Initial index levels: | 1,145.291 for Russell 2000 and 2,065.89 for S&P 500
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| Barrier/trigger levels: | 801.704 for Russell 2000 and 1,446.12 for S&P 500; 70% of initial levels
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| Pricing date: | Oct. 27
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| Settlement date: | Nov. 3
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| Agent: | RBC Capital Markets LLC
|
| Fees: | None
|
| Cusip: | 78012KJB4
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