Published on 9/15/2017 in the Prospect News Structured Products Daily.
New Issue: RBC sells $188,000 contingent coupon barrier autocallables on Costco, Wal-Mart
By Marisa Wong
Morgantown, W.Va., Sept. 15 – Royal Bank of Canada priced $188,000 of autocallable contingent coupon barrier notes due Sept. 12, 2019 linked to the lesser performing of the common stocks of Costco Wholesale Corp. and Wal-Mart Stores, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
If each stock closes at or above its 75% coupon barrier on a quarterly observation date, the notes will pay a contingent coupon for that quarter at an annual rate of 7.55%.
The notes will be called at par if each stock closes at or above its initial price on any quarterly observation date after six months.
The payout at maturity will be par unless either stock finishes below its 75% trigger price, in which case investors will be fully exposed to any losses of the worse performing stock.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
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| Issue: | Autocallable contingent coupon barrier notes
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| Underlying stocks: | Costco Wholesale Corp. (Symbol: COST), Wal-Mart Stores, Inc. (Symbol: WMT)
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| Amount: | $188,000
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| Maturity: | Sept. 12, 2019
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| Coupon: | 7.55%, payable each quarter that each stock closes at or above coupon barrier on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless either stock finishes below trigger price, in which case full exposure to losses of worse performing stock
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| Call: | At par if each stock closes at or above initial price on any quarterly observation date beginning March 8, 2018
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| Initial price: | $157.31 for Costco, $78.88 for Wal-Mart
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| Coupon barrier: | $117.98 for Costco, $59.16 for Wal-Mart; 75% of initial prices
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| Trigger price: | $117.98 for Costco, $59.16 for Wal-Mart; 75% of initial price
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| Pricing date: | Sept. 8
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| Settlement date: | Sept. 13
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 1.75%
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| Cusip: | 78012K5U7
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