By Angela McDaniels
Tacoma, Wash., July 16 – Royal Bank of Canada priced $4.51 million of trigger autocallable contingent yield notes due July 15, 2022 linked to the lesser performing of the iShares MSCI Emerging Markets exchange-traded fund and the SPDR S&P 500 ETF trust, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon at an annual rate of 9.15% if each ETF closes at or above its downside threshold, 70% of its initial share price, on the observation date for that quarter.
After six months, the notes will be automatically called at par of $10 if each ETF closes at or above its initial share price on any quarterly observation date prior to the final valuation date.
The payout at maturity will be par unless either ETF finishes below its downside threshold, in which case investors will be exposed to the decline of the lesser-performing ETF from its initial share price.
UBS Financial Services Inc. and RBC Capital Markets LLC are the underwriters.
| Issuer: | Royal Bank of Canada
|
| Issue: | Trigger autocallable contingent yield notes
|
| Underlying ETFs: | iShares MSCI Emerging Markets ETF and SPDR S&P 500 ETF trust
|
| Amount: | $4,505,500
|
| Maturity: | July 15, 2022
|
| Coupon: | 9.15%, payable quarterly if ETFs close at or above downside thresholds on observation date for that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | Par unless either ETF finishes below downside threshold, in which case exposure to decline of lesser-performing ETF from initial level
|
| Call: | After six months, automatically at par if ETFs close at or above initial share price on any quarterly observation date prior to final valuation date
|
| Initial share prices: | $42.85 for emerging markets ETF and $300.65 for S&P trust
|
| Downside thresholds: | $30.00 for emerging markets ETF and $210.46 for S&P trust, or 70% of initial share prices
|
| Pricing date: | July 12
|
| Settlement date: | July 17
|
| Underwriters: | UBS Financial Services Inc. and RBC Capital Markets LLC
|
| Fees: | None
|
| Cusip: | 78014J215
|
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