Published on 9/19/2017 in the Prospect News Structured Products Daily.
New Issue: RBC sells $1.61 million contingent coupon barrier autocallables tied to three stocks
By Susanna Moon
Chicago, Sept. 19 – Royal Bank of Canada priced $1.61 million of autocallable contingent coupon barrier notes due Sept. 17, 2020 linked to the lesser performing of the common stocks of Walt Disney Co., Viacom Inc. and Qualcomm Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 15.25% if each stock closes at or above its 70% coupon barrier on the observation date for that quarter.
The notes will be called at par if each stock closes its initial level on any coupon payment date after six months.
The payout at maturity will be par unless any stock finishes below its 70% trigger level, in which case investors will be fully exposed to any losses of the worst 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: | Walt Disney Co. (Symbol: DIS), Viacom Inc. (Symbol: VIAB) and Qualcomm Inc. (Symbol: QCOM)
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| Amount: | $1,608,000
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| Maturity: | Sept. 17, 2020
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| Coupon: | 15.25%, payable quarterly if each stock closes at or above 70% coupon barrier on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless any stock finishes below 70% trigger level, in which case shares of the worst performing stock equal to $1,000 divided by the initial share price
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| Call: | At par if each stock closes above initial level on any coupon payment date beginning March 13, 2018
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| Initial levels: | $98.82 for Disney, $27.91 for Viacom and $51.01 for Qualcomm
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| Trigger levels: | $69.17 for Disney, $19.54 for Viacom and $35.71 for Qualcomm, 70% of initial levels
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| Pricing date: | Sept. 13
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| Settlement date: | Sept. 18
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| Agents: | RBC Capital Markets, LLC
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| Fees: | 2.75%
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| Cusip: | 78012K6D4
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