By Susanna Moon
Chicago, July 18 – Royal Bank of Canada priced $995,000 of autocallable contingent coupon barrier notes due July 11, 2019 linked to the SPDR S&P Oil & Gas Exploration & Production ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 8.5% if the fund closes at or above the 70% coupon barrier on the observation date for that quarter.
The notes will be called at par if the fund closes at or above its initial price on any quarterly observation date after one year.
The payout at maturity will be par unless the fund finishes below the 70% trigger level, in which case investors will be fully exposed to any losses.
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 fund: | SPDR S&P Oil & Gas Exploration & Production ETF
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| Amount: | $995,000
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| Maturity: | July 11, 2019
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| Coupon: | 8.5%, payable quarterly if fund 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 fund finishes below trigger, in which case 1% loss for each 1% decline of fund
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| Call: | At par if fund closes at or above initial price on any quarterly observation date beginning Jan. 8, 2018
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| Initial level: | $30.66
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| Trigger level: | $21.46, 70% of initial level
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| Pricing date: | July 7
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| Settlement date: | July 12
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| Agents: | RBC Capital Markets, LLC
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| Fees: | 1.75%
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| Cusip: | 78012KZ75
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