Published on 12/26/2017 in the Prospect News Structured Products Daily.
New Issue: RBC prices $3.27 million 7% contingent coupon barrier callables tied to fund, indexes
By Susanna Moon
Chicago, Dec. 26 – Royal Bank of Canada priced $3.27 million of issuer callable contingent coupon barrier notes due Dec. 16, 2021 linked to least performing of the iShares MSCI Emerging Markets exchange-traded fund, the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 7% if each underlying component closes at or above its 65% coupon barrier on any determination date for that quarter.
The notes are callable at par on any coupon payment date after one year.
The payout at maturity will be par unless any component finishes below the 65% barrier level, in which case investors will be fully exposed to any losses of the worst performing index or fund.
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 assets: | iShares MSCI Emerging Markets ETF, Russell 2000 index and Euro Stoxx 50 index
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| Amount: | $3,265,000
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| Maturity: | Dec. 16, 2021
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| Coupon: | 7%, payable quarterly if each component closes at or above its 65% coupon barrier on any determination date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless any component finishes below barrier, in which case par plus return of worst performing component with full exposure to any losses
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| Call option: | At par on any coupon payment date beginning Dec. 12, 2018
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| Initial levels: | $45.86 for EM fund, 1,516.117 for Russell and 3,600.35 for Stoxx
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| Barrier levels: | $29.81 for EM fund, 985.476 for Russell and 2,340.23 for Stoxx, 65% of initial levels
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| Pricing date: | Dec. 12
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| Settlement date: | Dec. 15
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| Agents: | RBC Capital Markets, LLC
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| Fees: | 3.25%
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| Cusip: | 78013XBW7
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