Published on 9/2/2016 in the Prospect News Structured Products Daily.
New Issue: RBC prices $1.71 million contingent coupon barrier autocallables linked to ETFs
By Angela McDaniels
Tacoma, Wash., Sept. 2 – Royal Bank of Canada priced $1.71 million of autocallable contingent coupon barrier notes due Sept. 6, 2017 linked to the least performing of the iShares Russell 2000 exchange-traded fund, PowerShares QQQ Trust, Series 1 and the SPDR S&P Biotech exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon at an annual rate of 8.1% if each ETF closes at or above its trigger level, 60% of its initial share price, on the observation date for that quarter.
The notes will be called at par if each ETF closes at or above its initial share price on any quarterly observation date.
The payout at maturity will be par unless any ETF finishes below its trigger level, in which case investors will be exposed to the decline of the least-performing ETF from its initial share price.
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 ETFs: iShares Russell 2000 ETF, PowerShares QQQ Trust, Series 1 and SPDR S&P Biotech ETF
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| Amount: | $1,705,000
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| Maturity: | Sept. 6, 2017
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| Coupon: | 8.1%, payable quarterly if each ETF closes at or above trigger level on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless any ETF finishes below trigger level, in which case full exposure to decline of least-performing ETF from initial share price
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| Call: | At par if each ETF closes at or above initial share price on any quarterly observation date
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| Initial share prices: | $123.22 for iShares Russell, $116.44 for PowerShares QQQ and $60.08 for biotech ETF
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| Trigger levels: | $73.93 for iShares Russell, $69.86 for PowerShares QQQ and $36.05 for biotech ETF; 60% of initial share prices
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| Pricing date: | Aug. 31
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| Settlement date: | Sept. 6
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| Underwriter: | RBC Capital Markets, LLC
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| Fees: | 1.5%
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| Cusip: | 78012KTA5
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