Published on 6/26/2021 in the Prospect News Structured Products Daily.
New Issue: RBC sells $1 million phoenix autocallable notes linked to ServiceNow
By Kiku Steinfeld
Chicago, June 28 – Royal Bank of Canada priced $1 million of phoenix autocallable notes with memory coupon due June 15, 2023 linked to the common stock of ServiceNow, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes pay a contingent quarterly coupon at an annual rate of 10% if the stock closes at or above its 80.56% coupon barrier on the observation date for that quarter, plus any previously unpaid contingent interest payments.
The notes will be automatically called at par plus the contingent coupon and any unpaid coupon if the stock closes above its initial share price on any quarterly observation date.
The payout at maturity will be par unless the stock finishes below its 80.56% trigger level, in which case investors will receive a number of shares of the stock equal to $1,000 divided by the initial share price or, at the issuer’s option, the cash equivalent.
RBC Capital Markets, LLC, JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC are the agents.
| Issuer: | Royal Bank of Canada
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| Issue: | Phoenix autocallable notes with memory coupon
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| Underlying stocks: | ServiceNow, Inc.
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| Amount: | $1 million
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| Maturity: | June 15, 2023
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| Coupon: | 10% per year, payable quarterly if stock closes at or above coupon barrier on observation date for that quarter, plus any previously unpaid contingent interest payments
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| Price: | Par
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| Payout at maturity: | Par unless stock finishes below trigger level, in which case investors will receive a number of shares of stock equal to $1,000 divided by initial share price or, at issuer’s option, cash equivalent
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| Call: | Automatically at par plus contingent coupon and any unpaid coupon if stock closes above its initial share price on any quarterly observation date
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| Initial share price: | $489.13
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| Coupon barrier/trigger price: | $394.48, 80.56% of initial share price
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| Pricing date: | June 11
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| Settlement date: | June 16
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| Agents: | RBC Capital Markets, LLC, JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC
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| Fees: | 1.5%
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| Cusip: | 78016EAM9
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