By William Gullotti
Buffalo, N.Y., Aug. 8 – Royal Bank of Canada priced $3 million of autocallable contingent coupon barrier notes with memory coupon due Aug. 7, 2024 linked to the SPDR S&P 500 ETF Trust, according to a 424B2 filing with the Securities and Exchange Commission.
The notes pay a contingent quarterly coupon at an annual rate of 10.3% if the ETF closes at or above its coupon barrier price, 80% of its initial price, on the corresponding observation date. Previously unpaid coupons, if any, will automatically include any previously unpaid coupons.
The notes will be called at par plus coupon if the ETF closes at or above its initial share price on any quarterly observation date after six months.
If the notes are not called and the ETF finishes at or above its coupon barrier price, the payout at maturity will be par plus all unpaid coupons.
If the ETF finishes below its coupon barrier but at or above its 70% trigger price, the payout will be par.
Otherwise, investors will receive a number of shares per note equal to $1,000 divided by the ETF’s initial share price or, at the issuer’s option, the cash equivalent.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
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| Issue: | Autocallable contingent coupon barrier notes with memory coupon
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| Underlying fund: | SPDR S&P 500 ETF Trust
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| Amount: | $3 million
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| Maturity: | Aug. 7, 2024
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| Coupon: | 10.3% annual rate, payable quarterly if ETF closes at or above coupon barrier price on the corresponding observation date; coupon payment events will automatically include any previously unpaid coupons
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| Price: | Par
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| Payout at maturity: | If ETF finishes at or above coupon barrier, par plus all unpaid coupons; if the ETF finishes below coupon barrier but at or above trigger price, par; otherwise, investors will receive 2.45 shares per note or, at the issuer’s option, the cash equivalent
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| Call: | At par plus coupon if ETF closes at or above initial share price on any quarterly observation date after six months
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| Initial share price: | $408.06
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| Coupon barrier price: | $326.45; 80% of initial price
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| Trigger price: | $285.64; 70% of initial price
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| Strike date: | Aug. 2
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| Pricing date: | Aug. 3
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| Settlement date: | Aug. 8
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| Underwriter: | RBC Capital Markets, LLC
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| Fees: | 0.5%
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| Cusip: | 78015QBS9
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