Published on 11/27/2019 in the Prospect News Structured Products Daily.
New Issue: RBC prices $4.5 million contingent coupon barrier autocallables linked to indexes
By Kiku Steinfeld
Chicago, Nov. 27 – Royal Bank of Canada priced $4.5 million of autocallable contingent coupon barrier notes due Nov. 17, 2020 linked to the least performing of 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 an annual rate of 7.1% if each index closes at or above its coupon barrier level, 80% of its initial level, on the observation date for that quarter.
The notes will be called at par plus the coupon if each index closes above its initial level on any observation date after six months.
The payout at maturity will be par plus any coupon due unless either index finishes below its 75% trigger level, in which case investors will lose 1% for each 1% decline of the lesser-performing index from its initial level.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
|
| Issue: | Autocallable contingent coupon barrier notes
|
| Underlying indexes: | S&P 500, Russell 2000
|
| Amount: | $4,500,000
|
| Maturity: | Nov. 17, 2020
|
| Coupon: | 7.1%, payable quarterly if each index closes at or above coupon barrier level on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par plus any coupon unless either index finishes below trigger level, in which case 1% loss for each 1% decline of lesser-performing index from initial level
|
| Call: | Automatically at par on any observation date after six months if each index finishes above its initial level
|
| Initial levels: | 3,091.84 for S&P 500, 1,595.117 for Russell 2000
|
| Coupon barrier levels: | 2,473.47 for S&P 500, 1,276.094 for Russell 2000, 80% of initial levels
|
| Trigger levels: | 2,318.88 for S&P 500, 1,196.338 for Russell 2000, 75% of initial levels
|
| Pricing date: | Nov. 12
|
| Settlement date: | Nov. 15
|
| Agent: | RBC Capital Markets, LLC
|
| Fees: | 1%
|
| Cusip: | 78015KFQ2
|
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