By Kiku Steinfeld
Chicago, July 6 – Royal Bank of Canada priced $10 million buffered phoenix autocallable notes with memory coupon due June 29, 2021 linked to SPDR S&P 500 ETF Trust, according to a 424B2 filing with the Securities and Exchange Commission.
If the ETF closes at or above the barrier level, 80% of the initial level, on a monthly observation date, the notes will pay a contingent coupon for that month at an annualized rate of 11%, plus any previously unpaid contingent interest payments.
The notes will be called at par if the shares close at or above the initial share price on any observation date other than the final date.
The payout at maturity will be par plus the final coupon and any previously unpaid coupons unless the ETF finishes below the 80% buffer level, in which case investors will lose 1.25% for each 1% ETF decline beyond the buffer.
RBC Capital Markets, LLC, JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC are the agents.
| Issuer: | Royal Bank of Canada
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| Issue: | Buffered phoenix autocallable notes with memory coupon
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| Underlying ETF: | SPDR S&P 500 ETF Trust
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| Amount: | $10 million
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| Maturity: | June 29, 2021
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| Coupon: | 11% annualized, plus any previously unpaid coupons, if index closes at or above barrier level on monthly observation date
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| Price: | Par
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| Payout at maturity: | Par plus contingent coupon and previously unpaid coupons if index finishes at or above buffer level; otherwise, 1.25% loss for each 1% ETF decline beyond buffer
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| Call: | At par plus contingent coupon and previously unpaid coupons if index closes at or above initial level on a monthly observation date
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| Initial price: | $304.09
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| Barrier/buffer price: | $243.27; 80% of initial price
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| Pricing date: | June 25
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| Settlement date: | June 30
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| Agents: | RBC Capital Markets, LLC, JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC
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| Fees: | 0.5%
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| Cusip: | 78015KUP7
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