Published on 6/14/2017 in the Prospect News Structured Products Daily.
New Issue: RBC prices $940,000 contingent coupon barrier autocallables tied to indexes, ETF
By Wendy Van Sickle
Columbus, Ohio, June 14 – Royal Bank of Canada priced $940,000 of autocallable contingent coupon barrier notes due June 12, 2020 linked to the least performing of the S&P 500 index, the Euro Stoxx 50 index and the iShares MSCI Emerging Markets exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly coupon at an annual rate of 8.22% if each asset closes above its trigger level, 75% of its initial level, on the review date for that quarter.
The notes will be called at par plus the coupon if each asset closes above its initial price on a review date, starting June 11, 2018.
The payout at maturity will be par plus the final coupon unless any asset finishes below the 75% trigger level, in which case investors will lose 1% for each 1% that the least-performing asset’s final level is less than its initial level.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
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| Issue: | Autocallable contingent coupon barrier notes
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| Underlying assets: | iShares MSCI Emerging Markets exchange-traded fund, Euro Stoxx 50 index, S&P 500 index
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| Amount: | $940,000
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| Maturity: | June 12, 2020
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| Coupon: | 8.22%, payable quarterly if each asset closes at or above coupon barrier level on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless any asset finishes below trigger level, in which case 1% loss for each 1% decline of least-performing asset from initial level
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| Call: | At par plus coupon if each asset closes above its initial price on a review date, starting June 11, 2018
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| Initial levels: | $41.61 for ETF, 3,586.07 for Stoxx and 2,431.77 for S&P
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| Trigger/coupon barriers: | $31.21for ETF, 2,689.55 for Stoxx and 1,823.83 for S&P; 75% of initial levels
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| Pricing date: | June 9
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| Settlement date: | June 14
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| Agents: | RBC Capital Markets, LLC
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| Fees: | 2.5%
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| Cusip: | 78012KU54
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