Published on 8/16/2016 in the Prospect News Structured Products Daily.
New Issue: RBC prices $1.37 million callable contingent coupon barrier notes linked to indexes, ETF
By Angela McDaniels
Tacoma, Wash., Aug. 16 – Royal Bank of Canada priced $1.37 million of callable contingent coupon barrier notes due Aug. 15, 2019 linked to the least performing of the PowerShares QQQ Trust, Series 1, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon at an annual rate of 7.2% if each underlier closes at or above its trigger level, 75% of its initial level, on the observation date for that quarter.
Beginning Aug. 14, 2017, the notes are callable on any interest payment date.
The payout at maturity will be par unless any underlier finishes below its trigger level, in which case investors will be exposed to the decline of the least-performing underlier from its initial level.
RBC Capital Markets, LLC is the underwriter.
Issuer: | Royal Bank of Canada
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Issue: | Callable contingent coupon barrier notes
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Underliers: | PowerShares QQQ Trust, Series 1, Russell 2000 index and S&P 500 index
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Amount: | $1,365,000
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Maturity: | Aug. 15, 2019
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Coupon: | 7.2%, payable quarterly if each underlier closes at or above trigger level on observation date for that quarter
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Price: | Par
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Payout at maturity: | Par unless any underlier finishes below trigger level, in which case full exposure to decline of least-performing underlier from initial level
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Call: | At par on any interest payment date from Aug. 14, 2017 onward
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Initial levels: | 2,184.05 for S&P 500, 1,229.820 for Russell 2000 and $117.20 for PowerShares QQQ
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Trigger levels: | 1,528.84 for S&P 500, 860.874 for Russell 2000 and $82.04 for PowerShares QQQ; 70% of initial levels
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Pricing date: | Aug. 12
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Settlement date: | Aug. 17
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Underwriter: | RBC Capital Markets, LLC
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Fees: | 2.75
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Cusip: | 78012KRR0
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