By Marisa Wong
Morgantown, W.Va., Nov. 14 – Royal Bank of Canada priced $5 million of autocallable contingent coupon barrier notes due Nov. 15, 2018 linked to the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon of 8.24% per year 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 observation date beginning Feb. 9, 2017.
The payout at maturity will be par plus the final contingent coupon unless either index finishes below its 70% trigger level, in which case investors will be fully exposed to any losses of the worse performing index.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
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| Issue: | Autocallable contingent coupon barrier notes
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| Underlying indexes: | Russell 2000 and S&P 500
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| Amount: | $5 million
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| Maturity: | Nov. 15, 2018
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| Coupon: | 8.24% per year, payable monthly if each index closes at or above coupon barrier on observation date for that month
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above its trigger level, par plus the final contingent coupon; otherwise, full exposure to decline of worse performing index
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| Call: | At par if each index closes at or above initial level on any quarterly observation date starting Feb. 9, 2017
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| Initial levels: | 2,131.33 for S&P and 1,198.400 for Russell
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| Coupon barrier/trigger levels: | 1,491.93 for S&P and 838.880 for Russell; 70% of initial levels
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| Pricing date: | Nov. 9
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| Settlement date: | Nov. 15
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| Agent: | RBC Capital Markets LLC
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| Fees: | None
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| Cusip: | 78012KVQ7
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