RBC eyes contingent coupon barrier autocallables on biotech fund

By Sarah Lizee

Olympia, Wash., Jan. 23 – Royal Bank of Canada plans to price autocallable contingent coupon barrier notes due Feb. 3, 2022 linked to the SPDR S&P Biotech exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of 7.8% to 8.8% if the fund closes at or above the 70% trigger level 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 beginning July 29.

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.

The notes will price on Jan. 29.

The Cusip number is 78013XXP8.

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