Published on 10/1/2014 in the Prospect News Structured Products Daily.
New Issue: RBC prices $1.33 million contingent coupon callable yield notes on indexes, ETF
By Jennifer Chiou
New York, Oct. 1 – Royal Bank of Canada priced $1.33 million of contingent coupon callable yield notes due March 31, 2016 linked to the worst performing of the Russell 2000 index, the S&P 500 index and the iShares MSCI Emerging Markets exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon if each underlying closes at or above its barrier level, 75% of its initial level, on the observation date for that quarter. The contingent coupon rate is 9.6% per year.
The payout at maturity will be par unless any underlying finishes below its barrier level, in which case investors will be fully exposed to the decline of the least-performing underlying.
The notes are callable at par on any interest payment date beginning on Dec. 31.
RBC Capital Markets, LLC and Barclays are the underwriters.
| Issuer: | Royal Bank of Canada
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| Issue: | Contingent coupon callable yield notes
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| Underlyings: | Russell 2000 index, S&P 500 index and iShares MSCI Emerging Markets ETF
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| Amount: | $1.33 million
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| Maturity: | March 31, 2016
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| Coupon: | 9.6% per year, payable quarterly if each underlying closes at or above barrier level on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless any underlying finishes below barrier level, in which case full exposure to decline of least-performing underlying
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| Call option: | At par on any interest payment date beginning on Dec. 31
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| Initial levels: | $42.23 for ETF, 1,110.24 for Russell 2000 and 1,965.99 for S&P 500
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| Barrier levels: | $31.67 for ETF, 832.68 for Russell 2000 and 1,474.49 for S&P 500; 75% of initial levels
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| Pricing date: | Sept. 25
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| Settlement date: | Sept. 30
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| Underwriters: | RBC Capital Markets, LLC and Barclays
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| Fees: | 1.5%
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| Cusip: | 78010UY35
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