Published on 10/11/2017 in the Prospect News Structured Products Daily.
New Issue: RBC sells $290,000 6.05% contingent barrier callables tied to indexes
By Susanna Moon
Chicago, Oct. 11 – Royal Bank of Canada priced $290,000 of callable contingent coupon barrier notes due Sept. 30, 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.
The notes will pay a contingent quarterly coupon at an annual rate of 6.05% if each index closes at or above its 75% coupon barrier on the observation date for that quarter.
The notes are callable at par on any interest payment date after one year.
The payout at maturity will be par unless either index finishes below its 70% trigger level, in which case investors will be fully exposed to any losses of the worse performing index.
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: | Russell 2000 index, S&P 500 index
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Amount: | $290,000
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Maturity: | Sept. 30, 2022
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Coupon: | 6.05%, payable quarterly if each index closes at or above 75% coupon barrier 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 shares of the worse performing index equal to $1,000 divided by the initial share price
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Call option: | At par on any interest payment date beginning Sept. 27, 2018
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Initial levels: | 1,484.813 for Russell, 2,507.04 for S&P
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Coupon barriers: | 1,113.61 for Russell, 1,880.28 for S&P, 75% of initial levels
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Trigger levels: | 1,039.369 for Russell, 1,754.93 for S&P, 70% of initial levels
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Pricing date: | Sept. 27
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Settlement date: | Sept. 29
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Agent: | RBC Capital Markets, LLC
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Fees: | 2.25%
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Cusip: | 78012K7H4
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