Published on 5/1/2021 in the Prospect News Structured Products Daily.
New Issue: RBC sells $2.77 million contingent coupon barrier autocallables on airline basket
Chicago, May 3 – Royal Bank of Canada priced $2.77 million of autocallable contingent coupon barrier notes with memory coupon due March 20, 2024 linked to an equally weighted basket of the common stocks of American Airlines Group Inc., Southwest Airlines Co. and United Airlines Holdings, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 10.5% if the basket closes at or above its 60% coupon barrier on the observation date for that quarter. Previously unpaid coupons will also be paid.
The notes will be automatically called at par plus the coupon if the basket closes above its initial level on any quarterly call observation date starting after six months.
The payout at maturity will be par unless the basket finishes below its 60% trigger level, in which case investors will be fully exposed to the loss.
RBC Capital Markets, LLC is the agent.
Issuer: | Royal Bank of Canada
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Issue: | Autocallable contingent coupon barrier notes with memory coupon
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Underlying basket: | American Airlines Group Inc., Southwest Airlines Co. and United Airlines Holdings, Inc., equal weights
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Amount: | $2,772,000
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Maturity: | March 20, 2024
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Coupon: | 10.5%, payable each quarter that basket closes at or above coupon barrier on observation date for that quarter; previously unpaid coupons will also be paid
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Price: | Par
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Payout at maturity: | Par unless basket finishes below its knock-in level, in which case full exposure to loss
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Call: | Automatically at par plus coupon if basket closes at or above initial share price on any quarterly call observation date after six months
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Initial prices: | $25.17 for American, $62.10 for Southwest, $60.94 for United
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Coupon barrier level: | 60% of initial level
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Trigger level: | 60% of initial level
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Pricing date: | March 15
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Settlement date: | March 18
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Agent: | RBC Capital Markets, LLC
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Fees: | 2.25%
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Cusip: | 78016EMC8
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