Published on 2/1/2017 in the Prospect News Structured Products Daily.
New Issue: RBC sells $3 million contingent coupon barrier autocallables on indexes
By Wendy Van Sickle
Columbus, Ohio, Feb. 1 – Royal Bank of Canada priced $3 million of autocallable contingent coupon barrier notes due Oct. 31, 2018 linked to the lesser 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 an annual rate of 7% if each index closes at or above the 70% barrier level on the observation date for that quarter.
The notes will be called at par if each index closes at or above its initial price on any quarterly observation date.
The payout at maturity will be par unless any index finishes below the 70% barrier level, in which case investors will lose 1% for each 1% decline of the lesser-performing index.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
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| Issue: | Autocallable contingent coupon barrier notes
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| Underliers: | S&P 500 and Russell 2000
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| Amount: | $3 million
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| Maturity: | Oct. 31, 2018
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| Coupon: | 7%, payable quarterly if each index closes at or above barrier level on observation date for that quarter
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| Price: | Par of $1,000
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| Payout at maturity: | Par unless any index finishes below barrier level, in which case 1% loss for each 1% decline of lesser-performing index
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| Call: | At par if each index closes at or above initial price on any quarterly observation date
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| Initial levels: | 2,296.61 for S&P 500, 1,375.59 for Russell 2000
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| Barrier levels: | 1,607.63 for S&P 500, 962.91 for Russell 2000; 70% of initial levels
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| Pricing date: | Jan. 26
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| Settlement date: | Jan. 31
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| Agents: | RBC Capital Markets, LLC
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| Fees: | 0.5%
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| Cusip: | 78012KZH3
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