Published on 2/21/2020 in the Prospect News Structured Products Daily.
New Issue: RBC sells $1.67 million callable contingent coupon barrier notes on S&P, Dow
By Marisa Wong
Los Angeles, Feb. 21 – Royal Bank of Canada priced $1.67 million of issuer callable contingent coupon barrier notes due Feb. 19, 2027 linked to the lesser performing of the S&P 500 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 4.25% if each index closes at or above its 60% coupon barrier on the related quarterly observation date.
The notes will be callable at par on any coupon payment date after one year.
The payout at maturity will be par unless either index finishes below the 60% trigger level, in which case investors will lose 1% for every 1% decline of the worse performing index.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
|
| Issue: | Issuer callable contingent coupon barrier notes
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| Underlying indexes: | S&P 500 index and Dow Jones industrial average
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| Amount: | $1,669,000
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| Maturity: | Feb. 19, 2027
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| Coupon: | 4.25%, payable each quarter that each index closes at or above coupon barrier on observation date for that quarter
|
| Price: | Par
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| Payout at maturity: | Par unless either index finishes below trigger level, in which case full exposure to decline of worse performing index
|
| Call: | At par on any coupon payment date beginning in February 2021
|
| Initial levels: | 3,373.94 for S&P, 29,423.31 for Dow
|
| Coupon barriers: | 2,024.36 for S&P, 17,653.99 for Dow; 60% of initial levels
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| Trigger levels: | 2,024.36 for S&P, 17,653.99 for Dow; 60% of initial levels
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| Pricing date: | Feb. 13
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| Settlement date: | Feb. 19
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 2.25%
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| Cusip: | 78015KPB4
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