By Wendy Van Sickle
Columbus, Ohio, June 19 – Royal Bank of Canada priced $2.82 million of autocallable contingent coupon buffered enhanced return notes due June 20, 2023 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon of 6.75% times one-third times the number of knock-in levels that have not been breached by the closing index level any day during that month. The knock-in levels are 92%, 88% and 85% of the initial index level. If the closing level is less than 85% of the initial index level any day during the month, no coupon will be paid that month.
The notes will be called at par plus the contingent coupon if no knock-level has been breached any day during the life of the notes by the end date of the observation period occurring in June 2019.
If the notes are not called, at maturity investors will lose about 0.3623% for each 1% loss beyond 92% and down to 88%, about 0.7411% for each 1% loss below 89.9556% and down to 85% and 1.1133% for every 1% decline below 88.2407%.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
|
| Issue: | Autocallable contingent coupon buffered enhanced return notes
|
| Underlying index: | S&P 500
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| Amount: | $2,815,000
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| Maturity: | June 20, 2023
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| Coupon: | Payable monthly at base rate of 6.75%, times one-third, times the number of knock-in levels that have not been breached by closing index level any day during that month; knock-in levels are 92%, 88% and 85% of initial index level
|
| Price: | Par
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| Payout at maturity: | Loss of about 0.3623% for each 1% loss beyond 92% and down to 88%, about 0.7411% for each 1% loss below 89.9556% and down to 85% and 1.1133% for every 1% decline below 88.2407%
|
| Call: | Automatically at par plus the contingent coupon if no knock-level has been breached any day during the life of the notes by the end date of the observation period occurring in June 2019
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| Initial index level: | 2,779.66
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| Pricing date: | June 15
|
| Settlement date: | June 20
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| Underwriters: | RBC Capital Markets, LLC
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| Fees: | None
|
| Cusip: | 78013XML9
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