By William Gullotti
Buffalo, N.Y., Jan. 25 – Royal Bank of Canada priced $2.15 million of autocallable contingent coupon barrier notes with memory coupon due Jan. 23, 2026 linked to the performance of the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes pay a contingent semiannual coupon at the rate of 8.1% per year if the index closes at or above its coupon barrier level, 70% of its initial level, on the relevant observation date. Previously unpaid coupons, if any, will be automatically included whenever a coupon is paid.
The notes will be called at par plus coupon if the index closes at or above its initial level on any semiannual observation date.
If the notes are not called and the index finishes at or above its 70% trigger level, the payout at maturity will be par plus the final coupon.
Otherwise, investors will be fully exposed to the index’s decline from its initial level.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
|
| Issue: | Autocallable contingent coupon barrier notes with memory coupon
|
| Underlying index: | S&P 500 index
|
| Amount: | $2,152,000
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| Maturity: | Jan. 23, 2026
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| Coupon: | 8.1% per year, payable semiannually if the index closes at or above coupon barrier level on the relevant observation date; coupon payment events will automatically include any previously unpaid coupons
|
| Price: | Par
|
| Payout at maturity: | If the index finishes at or above trigger level, par plus all unpaid coupons; otherwise, investors will be fully exposed to decline
|
| Call: | At par plus coupon if the index closes at or above initial level on any semiannual observation date
|
| Initial level: | 3,972.61
|
| Coupon barrier level: | 2,780.83; 70% of initial levels
|
| Trigger level: | 2,780.83; 70% of initial levels
|
| Pricing date: | Jan. 20
|
| Settlement date: | Jan. 25
|
| Agent: | RBC Capital Markets, LLC
|
| Fees: | 1.5%
|
| Cusip: | 78016HK82
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