Published on 5/29/2015 in the Prospect News Structured Products Daily.
New Issue: RBC prices $2 million contingent income callable notes on three indexes
By Susanna Moon
Chicago, May 29 – Royal Bank of Canada priced $2 million of contingent income callable index-linked notes due May 31, 2019 linked to the worst performing of the Russell 2000 index, the S&P 500 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 6% if each index closes at or above its barrier level, 55% of its initial level, on an observation date for that quarter.
The notes are callable on any quarterly observation date at par plus accrued interest.
The payout at maturity is par unless any index closes below its 55% barrier level, in which case the payout will be par plus the return of the worst performing index, with full exposure to losses.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
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| Issue: | Contingent income callable index-linked notes
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| Underlying indexes: | Russell 2000, S&P 500 and Euro Stoxx 50
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| Amount: | $2 million
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| Maturity: | May 31, 2019
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| Coupon: | 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 either index closes below barrier level, in which case full exposure to decline of worst performing index
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| Call option: | At par on any quarterly observation date
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| Initial levels: | 2,104.20 for S&P, 1,238.76 for Russell, 3,619.30 for Euro Stoxx
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| Barrier levels: | 1,157.31 for S&P, 681.32 for Russell, 1,990.62 for Euro Stoxx; 55% of initial levels
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| Pricing date: | May 26
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| Settlement date: | May 29
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 2.25%
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| Cusip: | 78012KEE3
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