Published on 8/22/2019 in the Prospect News Structured Products Daily.
New Issue: RBC sells $625,000 callable contingent coupon barrier notes on indexes
By Sarah Lizee
Olympia, Wash., Aug. 22 – Royal Bank of Canada priced $625,000 of issuer callable contingent coupon barrier notes due Aug. 19, 2021 linked to the S&P 500 index, the Nasdaq-100 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 12.8% per year if each index closes at or above its coupon barrier level, 75% 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 either index finishes below its 75% trigger level, in which case investors will lose 1% for every 1% that the lesser-performing index declines from its initial level.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
|
| Issue: | Callable contingent coupon barrier notes
|
| Underlying indexes: | S&P 500, Nasdaq-100 and Russell 2000
|
| Amount: | $625,000
|
| Maturity: | Aug. 19, 2021
|
| Coupon: | 12.8% per year, payable each quarter if each index closes at or above coupon barrier level on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless either 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
|
| Initial index levels: | 2,888.68 for S&P, 1,493.640 for Russell, 7,604.109 for Nasdaq
|
| Coupon barrier/triggers: | 2,166.51 for S&P, 1,120.230 for Russell, 5,703.082 for Nasdaq; 75% of initial levels
|
| Pricing date: | Aug. 16
|
| Settlement date: | Aug. 21
|
| Underwriter: | RBC Capital Markets, LLC
|
| Fees: | 1.5%
|
| Cusip: | 78013XZW1
|
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