By Susanna Moon
Chicago, May 4 – Royal Bank of Canada priced $1.59 million of trigger phoenix autocallable notes due Oct. 31, 2017 linked to the SPDR S&P Bank 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 6.22% if the fund closes at or above its trigger level, 75% of the initial level, on an observation date for that quarter.
The notes will be called at par plus the contingent coupon if the fund closes at or above the initial price on a quarterly observation date.
The payout at maturity will be par plus the contingent coupon unless the fund finishes below the 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: | Trigger phoenix autocallable notes
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| Underlying fund: | SPDR S&P Bank ETF
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| Amount: | $1,592,000
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| Maturity: | Oct. 31, 2017
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| Coupon: | 6.22% per year, payable quarterly if fund closes at or above trigger price on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par plus contingent coupon if fund finishes at or above trigger price; otherwise, full exposure to nay losses
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| Call: | At par plus contingent coupon if fund closes at or above initial price on any quarterly observation date
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| Initial level: | $32.99
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| Trigger level: | $24.74, 75% of initial share price
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| Pricing date: | April 26
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| Settlement date: | April 29
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| Agents: | RBC Capital Markets, LLC and UBS Financial Services Inc.
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| Fees: | 1.5%
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| Cusip: | 78012KNP8
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