By Angela McDaniels
Tacoma, Wash., Dec. 22 – Royal Bank of Canada priced $1 million of contingent income callable notes due Dec. 22, 2022 linked to the lesser performing of the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon at an annual rate of 6.25% if each index closes at or above its barrier level, 60% of its initial level, on the observation date for that quarter.
The notes are callable at par on any quarterly call date.
The payout at maturity will be par unless either index finishes below its barrier level, in which case investors will be fully exposed to the decline of the lesser-performing index.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
|
| Issue: | Contingent income callable notes
|
| Underlying indexes: | S&P 500 and Russell 2000
|
| Amount: | $1 million
|
| Maturity: | Dec. 22, 2022
|
| Coupon: | Each quarter, notes pay contingent coupon at annual rate of 6.25% if each index closes at or above barrier level on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless either index finishes below barrier level, in which case full exposure to decline of lesser-performing index
|
| Call option: | At par on any quarterly call date
|
| Initial index levels: | 2,041.89 for S&P 500 and 1,135.360 for Russell 2000
|
| Barrier levels: | 1,225.13 for S&P 500 and 681.216 for Russell 2000; 60% of initial levels
|
| Pricing date: | Dec. 17
|
| Settlement date: | Dec. 22
|
| Underwriter: | RBC Capital Markets, LLC
|
| Fees: | 3.25%
|
| Cusip: | 78012KKG1
|
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