By Devika Patel
Knoxville, Tenn., May 17 – Royal Bank of Canada priced $5 million of callable contingent coupon barrier notes due May 20, 2019 linked to the least performing of the S&P 500 index and the Russell 2000 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 6.75% if each index closes at or above its trigger level, 70% of its initial level, on the observation date for that quarter.
The notes are callable on any interest payment date.
The payout at maturity will be par unless either index finishes below its 70% trigger level, in which case investors will lose 1% for each 1% decline of the least-performing index from its initial level.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
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| Issue: | Callable contingent coupon barrier notes
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| Underlying indexes: | S&P 500 and the Russell 2000
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| Amount: | $5 million
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| Maturity: | May 20, 2019
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| Coupon: | 6.75%, payable quarterly if each index closes at or above trigger level on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless either index finishes below trigger level, in which case 1% loss for each 1% decline of least-performing index from initial level
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| Call: | At par on any interest payment date from Aug. 15 onward
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| Initial levels: | 2,402.32 for S&P and 1,393.923 for Russell
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| Trigger levels: | 1,681.62 for S&P and 975.746 for Russell; 70% of initial levels
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| Pricing date: | May 15
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| Settlement date: | May 18
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| Agents: | RBC Capital Markets, LLC
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| Fees: | 0.4%
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| Cusip: | 78012KS57
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