By Wendy Van Sickle
Columbus, Ohio, April 24 – Royal Bank of Canada priced $10 million of buffered memory phoenix autocallable securities with downside leverage due April 24, 2024 linked to the SPDR S&P 500 ETF Trust, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 10.55% if the ETF closes at or above its 87% coupon barrier on the observation date for that period. Previously unpaid coupons will also be paid.
The notes will be automatically called at par plus any coupon due if the ETF closes above its initial level on any monthly determination date.
The payout at maturity will be par plus any coupons due unless the ETF finishes below the 87% downside threshold, in which case investors will lose 1.1494% for each 1% ETF decline beyond 13%.
RBC Capital Markets, LLC is the agent. Morgan Stanley Wealth Management is acting as distributor.
| Issuer: | Royal Bank of Canada
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| Issue: | Buffered memory phoenix autocallable securities with downside leverage
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| Underlying ETF: | SPDR S&P 500 ETF Trust
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| Amount: | $10 million
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| Maturity: | April 24, 2024
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| Coupon: | 10.55%, payable monthly if ETF closes at or above coupon barrier on observation date for that period; previously unpaid coupons will also be paid
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| Price: | Par
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| Payout at maturity: | Par unless ETF finishes below downside threshold level, in which case 1.1494% for each 1% loss beyond buffer
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| Call: | Automatically at par if the ETF closes above its initial level on any monthly determination date
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| Initial level: | $414.21
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| Coupon barrier/buffer: | $360.36; 87% of initial level
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| Pricing date: | April 19
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| Settlement date: | April 24
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| Agent: | RBC Capital Markets, LLC with Morgan Stanley Wealth Management as distributor
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| Fees: | 0.1%
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| Cusip: | 78016HYZ7
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