Published on 5/1/2017 in the Prospect News Structured Products Daily.
New Issue: RBC prices $3.82 million contingent yield trigger autocallables tied to two indexes
By Susanna Moon
Chicago, May 1 – Royal Bank of Canada priced $3.82 million of 0% trigger autocallable contingent yield notes due May 1, 2020 linked to the S&P 500 index and the Russell 2000 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 8% if each index closes at or above its coupon barrier, 70% of its initial level, on the observation date for that quarter.
The notes will be called at par if each index closes at or above its initial level on any quarterly observation date after six months.
The payout at maturity will be par plus the contingent coupon unless either index finishes below its 70% downside threshold, in which case investors will be fully exposed to any losses of the worse performing index.
RBC Capital Markets, LLC and UBS Financial Services Inc. are the underwriters.
| Issuer: | Royal Bank of Canada
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| Issue: | Trigger autocallable contingent yield notes
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| Underlying indexes: | Russell 2000 and S&P 500
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| Amount: | $3,818,000
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| Maturity: | May 1, 2020
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| Coupon: | 8%, payable quarterly if each index closes at or above 70% coupon barrier on observation date
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| Price: | Par of $10
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| Call: | At par plus contingent coupon if each index closes at or above initial level on any quarterly observation date after six months
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| Payout at maturity: | Par unless either index finishes below downside threshold, in which case 1% loss for each 1% decline of worse performing index
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| Initial levels: | 1,419.431 for Russell, 2,387.45 for S&P
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| Thresholds: | 993.602 for Russell, 1,671.22 for S&P; 70% of initial levels
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| Pricing date: | April 26
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| Settlement date: | April 28
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| Agents: | UBS Financial Services Inc. and RBC Capital Markets, LLC
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| Fees: | None
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| Cusip: | 78014E638
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