Published on 10/18/2018 in the Prospect News Structured Products Daily.
New Issue: RBC prices $8.06 million contingent income callable notes tied to three indexes
By Emma Trincal
New York, Oct. 18 – Royal Bank of Canada priced $8.06 million of contingent income issuer callable securities due Oct. 23, 2019 linked to the worst performing of the Euro Stoxx 50 index, the Russell 2000 index and the S&P 500 index, according to a424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon at an annual rate of 11% if each index closes at or above its coupon barrier, 80% of its initial index level, on each day during that quarter.
The notes are callable at par on any quarterly determination date beginning Jan. 15, 2019.
If each index finishes at or above its 75% downside threshold level, the payout at maturity will be par plus the final contingent coupon, if any. If the final level of any index is less than its downside threshold level, investors will be fully exposed to the decline of the least-performing index.
RBC Capital Markets, LLC is the agent. Distribution is through Morgan Stanley Wealth Management.
| Issuer: | Royal Bank of Canada
|
| Issue: | Contingent income issuer callable securities
|
| Underlying indexes: | S&P 500 index, Russell 2000 index and Euro Stoxx 50 index
|
| Amount: | $8,059,000
|
| Maturity: | Oct. 23, 2019
|
| Coupon: | 11% annualized, payable quarterly if each index closes at or above 80% coupon barrier on review date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If any index finishes at or above 75% downside threshold, par; otherwise, 1% loss for each 1% decline of worst performing index
|
| Call option: | At par on any coupon payment date beginning Jan. 15, 2019
|
| Initial levels: | 2,767.13 for S&P, 1,546.679 for Russell and 3,194.41 for Stoxx
|
| Coupon barriers: | 2,213.70 for S&P, 1,237.343 for Russell and 2,555.53 for Stoxx, 80% of initial levels
|
| Downside thresholds: | 2,075.35 for S&P, 1,160.009 for Russell and 2.395.81 for Stoxx, 75% of initial levels
|
| Pricing date: | Oct. 12
|
| Settlement date: | Oct. 17
|
| Agent: | RBC Capital Markets, LLC is the agent; distribution through Morgan Stanley Wealth Management
|
| Fees: | 1.50%
|
| Cusip: | 78013XN20
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
