Published on 1/31/2020 in the Prospect News Structured Products Daily.
New Issue: RBC sells $5.02 million trigger callable contingent yield notes on three indexes
By Sarah Lizee
Olympia, Wash., Jan. 31 – Royal Bank of Canada priced $5.02 million of trigger callable contingent yield notes with daily coupon observation due July 28, 2022 linked to the least performing of 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 of 8.3% per year if each index’s closing level is at or above its coupon barrier, 70% of its initial level, on each day that quarter.
The notes are callable at par of $10 plus any coupon on each quarterly observation date other than the final one.
If the notes are not called and each index finishes at or above its trigger level, 70% of its initial level, the payout at maturity will be par plus the coupon. Otherwise, investors will lose 1% for every 1% that the least-performing index’s final level is below its initial level.
UBS Financial Services Inc. and RBC Capital Markets, LLC are the underwriters.
| Issuer: | Royal Bank of Canada
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| Issue: | Trigger callable contingent yield notes with daily coupon observation
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| Underlying indexes: | S&P 500, Nasdaq-100 and Russell 2000
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| Amount: | $5,015,000
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| Maturity: | July 28, 2022
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| Coupon: | 8.3% per year, payable quarterly if each index closes at or above its coupon barrier on each day that quarter
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| Price: | Par of $10
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| Payout at maturity: | If each index finishes at or above trigger level, par plus coupon; otherwise, 1% loss for every 1% that least-performing index’s final level is below initial level
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| Call option: | At par plus any coupon on each quarterly observation date other than final one
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| Initial levels: | 3,325.54 for S&P, 9,216.984 for Nasdaq, 1,685.011 for Russell
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| Coupon barriers: | 2,327.88 for S&P, 6,451.889 for Nasdaq, 1,179.508 for Russell; 70% of initial levels
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| Trigger levels: | 2,327.88 for S&P, 6,451.889 for Nasdaq, 1,179.508 for Russell; 70% of initial levels
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| Pricing date: | Jan. 24
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| Settlement date: | Jan. 28
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| Agents: | UBS Financial Services Inc. and RBC Capital Markets, LLC
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| Fees: | 1%
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| Cusip: | 78014K378
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