By Devika Patel
Knoxville, Tenn., June 23 – Royal Bank of Canada priced $1 million of callable contingent coupon barrier notes due June 25, 2020 linked to the least performing of the Russell 2000 index and the Euro Stoxx 50 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 6.75% if each index closes at or above its coupon barrier level, 70% of its initial level, on the observation date for that quarter.
Beginning June 27, 2018, the notes are callable on any interest payment date.
The payout at maturity will be par plus the final coupon unless either index finishes below its 70% trigger level, in which case investors will lose 1% for each 1% decline of the least-performing index 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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| Underlying indexes: | Russell 2000 and the Euro Stoxx 50
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| Amount: | $1 million
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| Maturity: | June 25, 2020
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| Coupon: | 6.75%, payable quarterly if each index closes at or above coupon barrier level on observation date for that quarter
|
| Price: | Par
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| Payout at maturity: | Par plus final coupon unless either index finishes below trigger level, in which case 1% loss for each 1% decline of least-performing index from initial level
|
| Call: | At par on any interest payment date from June 27, 2018 onward
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| Initial levels: | 1,404.538 for Russell and 3,555.76 for Stoxx
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| Coupon barrier levels: | 983.177 for Russell and 2,489.03 for Stoxx; 70% of initial levels
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| Trigger levels: | 983.177 for Russell and 2,489.03 for Stoxx; 70% of initial levels
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| Pricing date: | June 22
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| Settlement date: | June 27
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| Agents: | RBC Capital Markets, LLC
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| Fees: | 2.75%
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| Cusip: | 78012KZ59
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