By Wendy Van Sickle
Columbus, Ohio, May 5 – Royal Bank of Canada priced $3 million of issuer callable contingent coupon barrier notes due May 1, 2019 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.
If each index closes at or above its barrier level, 70% of the initial level, on a quarterly observation date, the issuer will pay a contingent coupon for that quarter at the annual rate of 6.85%.
The notes will be callable at par on any coupon payment date.
If the notes are not called, the payout at maturity will be par plus the contingent coupon unless the final level of the lesser-performing index is less than its 75% trigger level, in which case investors will lose 1% for every 1% that the lesser-performing index finishes below its initial level.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
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| Issue: | Issuer callable contingent coupon barrier notes
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| Underlying indexes: | S&P 500 index and the Russell 2000 index
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| Amount: | $3 million
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| Maturity: | May 1, 2019
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| Coupon: | If each index closes at or above its barrier level on a quarterly observation date, the issuer will pay a contingent coupon for that quarter at the annual rate of 6.85%
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| Price: | Par
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| Payout at maturity: | Par plus the contingent coupon unless the final level of the lesser-performing index is less than its trigger level, in which case investors will lose 1% for every 1% that the lesser-performing index declines from its initial level
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| Call option: | At par on any coupon payment date
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| Initial levels: | 2,387.45 for S&P, 1,419.431 for Russell
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| Barrier/trigger prices: | 1,671.22 for S&P, 993.602 for Russell; 70% of initial share prices
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| Pricing date: | April 26
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| Settlement date: | May 1
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| Underwriter: | RBC Capital Markets, LLC
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| Fees: | 0.4%
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| Cusip: | 78012KN86
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