By William Gullotti
Buffalo, N.Y., Oct. 19 – Royal Bank of Canada priced $15.85 million of trigger autocallable contingent yield notes due Sept. 19, 2025 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at the rate of 11.15% per year if the index closes at or above its coupon barrier, 70% of its initial level, on the related observation date.
The notes will be automatically called at par plus the coupon if the index closes at or above its initial level on any quarterly call observation date after six months.
If the notes are not called and the final level is greater than or equal to the downside threshold level, 70% of the initial level, the payout at maturity will be par plus the final coupon. Otherwise, investors will lose 1% for every 1% that the index declines from its initial level.
UBS Financial Services LLC and RBC Capital Markets, LLC are the agents.
Issuer: | Royal Bank of Canada
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Issue: | Trigger autocallable contingent yield notes
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Underlying index: | S&P 500 index
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Amount: | $15,845,950
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Maturity: | Sept. 19, 2025
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Coupon: | 11.15% per year, paid quarterly if the index closes at or above its coupon barrier on the related observation date
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Price: | Par of $10
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Payout at maturity: | Par plus final coupon unless index finishes below downside threshold level, in which case 1% loss for each 1% decline from initial level
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Call: | Automatically at par plus the coupon if the index closes at or above the initial level on any quarterly call observation date after six months
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Initial level: | 3,873.33
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Coupon barrier level: | 2,711.33; 70% of initial level
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Downside threshold: | 2,711.33; 70% of initial level
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Pricing date: | Sept. 16
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Settlement date: | Sept. 21
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Agents: | UBS Financial Services LLC and RBC Capital Markets, LLC
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Fees: | None
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Cusip: | 78016D638
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