Published on 11/7/2019 in the Prospect News Structured Products Daily.
New Issue: RBC sells $614,000 callable contingent coupon barrier notes tied to three indexes
By Sarah Lizee
Olympia, Wash., Nov. 7 – Royal Bank of Canada priced $614,000 issuer callable contingent coupon barrier notes due May 2, 2025 tied to the S&P 500 index, the Russell 2000 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly contingent coupon at an annual rate of 5.2% if all three indexes close above their 60% coupon barrier on each day during the observation period for that quarter.
After one year the notes may be called at par plus any coupon due at the option of the issuer on any quarterly coupon payment date other than the final coupon payment date.
Investors will receive par plus the contingent coupon if the final level of the least performing index is above its 60% trigger level.
Otherwise, investors will be fully exposed to the losses of the least performing index.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
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| Issue: | Issuer callable contingent coupon barrier note
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| Underlying indexes: | S&P 500 index, Russell 2000 index and Dow Jones industrial average
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| Amount: | $614,000
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| Maturity: | May 2, 2025
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| Coupon: | 5.2% contingent quarterly if all three indexes close above coupon barriers
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| Price: | Par
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| Payout at maturity: | Par plus contingent coupon unless any index closes below trigger level, in which case full exposure to losses of least performing index
|
| Call: | At par plus any coupon due at the option of the issuer on any quarterly coupon payment date after one year
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| Initial levels: | 3,036.89 for S&P 500, 1,577.073 for Russell and 27,071.42 for Dow
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| Coupon barrier levels: | 1,822.13 for S&P 500, 946.244 for Russell and 16,242.85 for Dow, 60% of initial levels
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| Trigger levels: | 1,822.13 for S&P 500, 946.244 for Russell and 16,242.85 for Dow, 60% of initial levels
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| Pricing date: | Oct. 29
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| Settlement date: | Oct. 31
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 2.5%
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| Cusip: | 78015KAL8
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