Published on 1/31/2020 in the Prospect News Structured Products Daily.
New Issue: RBC sells $3.32 million issuer callable contingent coupon barrier notes tied to four indexes
By Kiku Steinfeld
Chicago, Jan. 31 – Royal Bank of Canada priced $3.32 million issuer callable contingent coupon barrier notes due July 29, 2025 tied to the S&P 500 index, the Nasdaq-100 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 5.25% if all indexes close above their 60% coupon barrier on any observation date 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.
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, Nasdaq-100 index, Russell 2000 index and Dow Jones industrial average
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| Amount: | $3,317,000
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| Maturity: | July 29, 2025
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| Coupon: | 5.25% per year, paid quarterly if all indexes close above coupon barriers any observation date for that quarter
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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
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| Call option: | After one year, at par plus any coupon due at the option of the issuer on any quarterly coupon payment date
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| Initial levels: | 3,295.47 for S&P 500, 1,662.232 for Russell, 28,989.73 for Dow and 9,141.467 for Nasdaq
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| Coupon barrier levels: | 1,977.28 for S&P 500, 997.339 for Russell and 17,393.84 for Dow and 5,484.880 for Nasdaq, 60% of initial levels
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| Trigger levels: | 1,977.28 for S&P 500, 997.339 for Russell and 17,393.84 for Dow and 5,484.880 for Nasdaq, 60% of initial levels
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| Pricing date: | Jan. 24
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| Settlement date: | Jan. 29
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 2.4%
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| Cusip: | 78015KRS5
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