Published on 12/10/2018 in the Prospect News Structured Products Daily.
New Issue: RBC sells $4.21 million contingent income callable notes on three indexes
By Sarah Lizee
Olympia, Wash., Dec. 10 – Royal Bank of Canada priced $4.21 million of contingent income issuer callable securities due Dec. 3, 2020 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 7.65% if each index closes at or above its coupon barrier, 65% of its initial index level, on each day during that quarter.
The notes are callable at par on any quarterly determination date beginning in May 2019.
If each index finishes at or above its 65% 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: | $4,206,000
|
| Maturity: | Dec. 3, 2020
|
| Coupon: | 7.65% annualized, payable quarterly if each index closes at or above 65% coupon barrier on review date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If any index finishes at or above 65% downside threshold, par; otherwise, 1% loss for each 1% decline of worst performing index
|
| Call option: | At par on any coupon payment date beginning in May 2019
|
| Initial levels: | 2,760.17 for S&P, 1,533.266 for Russell and 3,173.13 for Stoxx
|
| Coupon barriers: | 1,794.11 for S&P, 996.623 for Russell and 2,062.53 for Stoxx, 65% of initial levels
|
| Downside thresholds: | 1,794.11 for S&P, 996.623 for Russell and 2,062.53 for Stoxx, 65% of initial levels
|
| Pricing date: | Nov. 30
|
| Settlement date: | Dec. 5
|
| Agent: | RBC Capital Markets, LLC is the agent; distribution through Morgan Stanley Wealth Management
|
| Fees: | 2%
|
| Cusip: | 78013XSM1
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