By Susanna Moon
Chicago, May 17 – Royal Bank of Canada priced $4.7 million of trigger autocallable contingent yield notes due May 7, 2020 linked to the SPDR S&P Bank exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes pay a contingent quarterly coupon at an annual rate of 7.7% if the underlying fund closes at or above its 80% coupon barrier on the observation date for that quarter.
The notes will be called if the fund closes at or above its initial level on any quarterly observation date after six months.
The payout at maturity will be par unless the fund finishes below its 80% downside threshold, in which case investors will be fully exposed to any losses.
UBS Financial Services Inc. and RBC Capital Markets, LLC are the agents.
| Issuer: | Royal Bank of Canada
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| Issue: | Trigger autocallable contingent yield notes
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| Underlying fund: | SPDR S&P Bank exchange-traded fund
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| Amount: | $4,698,800
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| Maturity: | May 7, 2020
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| Coupon: | 7.7%, payable quarterly if fund closes at or above 80% coupon barrier on observation date for that quarter
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| Price: | Par of $10
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| Call: | At par if fund closes at or above initial price on any quarterly observation date after six months
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| Payout at maturity: | Par plus final coupon unless fund finishes below downside threshold, in which case 1% loss for every 1% decline
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| Initial price: | $48.38
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| Downside threshold: | $38.70, 80% of initial level
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| Pricing date: | May 4
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| Settlement date: | May 9
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| Underwriters: | RBC Capital Markets, LLC and UBS Financial Services Inc.
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| Fees: | 1.5%
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| Cusip: | 78013Q723
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