Published on 10/29/2018 in the Prospect News Structured Products Daily.
New Issue: RBC prices $600,000 callable contingent coupon barrier notes linked to S&P, Russell, Stoxx
By Wendy Van Sickle
Columbus, Ohio, Oct. 29 – Royal Bank of Canada priced $600,000 of issuer callable contingent coupon barrier notes due Oct. 27, 2020 linked to the Euro Stoxx 50 index, 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 pay a contingent coupon at the rate of 9.9% per year if each index closes at or above its coupon barrier level 70% of its initial level, on the observation date for that quarter.
The notes are callable at par on any interest payment date.
The payout at maturity will be par unless any index finishes below its 65% trigger level, in which case investors will lose 1% for every 1% that the least-performing index declines 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: | Euro Stoxx 50, S&P 500 and Russell 2000
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| Amount: | $600,000
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| Maturity: | Oct. 27, 2020
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| Coupon: | 9.9% per year, 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 unless any index finishes below trigger level, in which 1% loss for every 1% that lesser-performing index declines from initial level
|
| Call option: | Callable at par on any interest payment date
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| Initial index levels: | 3,190.09 for Stoxx, 2,755.88 for S&P and 1,539.501 for Russell 2000
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| Coupon barriers: | 2,233.06 for Stoxx, 1,929.12 for S&P and 1,077.651 for Russell 2000; 70% of initial levels
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| Triggers: | 2,073.56 for Stoxx, 1,791.32 for S&P and 1,000.676 for Russell 2000; 65% of initial levels
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| Pricing date: | Oct. 22
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| Settlement date: | Oct. 25
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| Underwriter: | RBC Capital Markets, LLC
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| Fees: | 0.5%
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| Cusip: | 78013XQ68
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