Published on 4/18/2023 in the Prospect News Structured Products Daily.
New Issue: RBC sells $2.53 million autocallable contingent coupon barrier notes on three indexes
By William Gullotti
Buffalo, N.Y., April 18 – Royal Bank of Canada priced $2.53 million of autocallable contingent coupon barrier notes due April 16, 2026 linked to the performance of the Nasdaq-100 index, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes pay a contingent quarterly coupon at the rate of 10.7% per year if the worst performing index closes at or above its coupon barrier level, 70% of its initial level, on the relevant observation date.
The notes will be called at par plus coupon if the worst performing index closes at or above its initial level on any quarterly observation date.
If the notes are not called and each index finishes at or above its coupon barrier, the payout at maturity will be par plus the final coupon.
If the worst performer finishes below its coupon barrier but at or above its 60% trigger level, the payout will be par. Otherwise, investors will be fully exposed to the decline of the worst performing index from its initial level.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
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| Issue: | Autocallable contingent coupon barrier notes
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| Underlying indexes: | Russell 2000 index, S&P 500 index, Nasdaq-100 index
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| Amount: | $2,532,000
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| Maturity: | April 16, 2026
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| Coupon: | 10.7%, payable quarterly if worst performing index closes at or above coupon barrier level on the relevant observation date
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| Price: | Par
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| Payout at maturity: | If all indexes finish at or above coupon barrier level, par plus final coupon; if worst performer finishes below coupon barrier but at or above trigger level, par; otherwise, investors will be fully exposed to the worst performer from its initial level
|
| Call: | At par plus coupon if each index closes at or above initial level on any quarterly observation date
|
| Initial levels: | 1,773.698 for Russell, 4,091.95 for S&P, 12,848.35 for Nasdaq
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| Coupon barrier levels: | 1,241.589 for Russell, 2,864.37 for S&P, 8,993.85 for Nasdaq; 70% of initial levels
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| Trigger levels: | 1,064.219 for Russell, 2,455.17 for S&P, 7,709.01 for Nasdaq; 60% of initial levels
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| Pricing date: | April 12
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| Settlement date: | April 17
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 0.25%
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| Cusip: | 78016HY79
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