By Wendy Van Sickle
Columbus, Ohio, March 29 – Royal Bank of Canada priced $1.08 million of trigger phoenix autocallable notes due March 29, 2019 linked to the worse performing of the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 7% per year if each index closes at or above its trigger level, 70% of its initial level, on the observation date for that quarter.
Beginning March 28, 2017, the notes will be called at par if each index closes at or above its initial level on any quarterly observation date.
If the notes are not called and each index finishes at or above its 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 underwriter.
| Issuer: | Royal Bank of Canada
|
| Issue: | Trigger phoenix autocallable notes
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| Underlying indexes: | S&P 500 and Russell 2000
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| Amount: | $1,084,000
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| Maturity: | March 19, 2019
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| Coupon: | 7% per year, payable quarterly if each index closes at or above trigger level on observation date for that quarter
|
| Price: | Par
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| 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 if each index closes at or above initial level on any quarterly observation date from March 28, 2017 onward
|
| Initial index levels: | 1,080.231 for Russell and 2,037.05 for S&P 500
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| Trigger levels: | 756.162 for Russell and 1,425.94 for S&P 500; 70% of initial levels
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| Pricing date: | March 28
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| Settlement date: | March 31
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| Underwriter: | RBC Capital Markets LLC
|
| Fees: | 2.25%
|
| Cusip: | 78012KLY1
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