Published on 2/1/2019 in the Prospect News Structured Products Daily.
New Issue: RBC prices $5.54 million 9.15% contingent yield trigger autocalls tied to two indexes
By Susanna Moon
Chicago, Feb. 1 – Royal Bank of Canada priced $5.54 million of trigger autocallable contingent yield notes due Jan. 21, 2022 linked to the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes pay a contingent quarterly coupon at an annual rate of 9.15% if each underlying index closes at or above its 70% coupon barrier on the observation date for that quarter.
The notes will be called if each index closes at or above its initial level on any quarterly observation date after six months.
The payout at maturity will be par unless either index finishes below its 70% downside threshold, in which case investors will be fully exposed to any losses of the worse performing index.
UBS Financial Services Inc. and RBC Capital Markets, LLC are the agents.
| Issuer: | Royal Bank of Canada
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| Issue: | Trigger autocallable contingent yield notes
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| Underlying indexes: | Russell 2000 index and S&P 500 index
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| Amount: | $5,538,150
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| Maturity: | Jan. 21, 2022
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| Coupon: | 9.15%, payable quarterly if each index closes at or above 70% coupon barrier on observation date for that quarter
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| Price: | Par of $10
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| Call: | At par if each index closes at or above initial price on any quarterly observation date after six months
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| Payout at maturity: | Par plus final coupon unless either index finishes below downside threshold, in which case 1% loss for every 1% decline of worse performing index
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| Initial prices: | 1,482.501 for Russell and 2,670.71 for S&P
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| Downside thresholds: | 1,037.751 for Russell and 1,869.50 for S&P, 70% of initial level
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| Pricing date: | Jan. 18
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| Settlement date: | Jan. 24
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| Underwriters: | RBC Capital Markets, LLC and UBS Financial Services Inc.
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| Fees: | None
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| Cusip: | 78014H185
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