By Kiku Steinfeld
Chicago, March 15 – Royal Bank of Canada priced $1 million issuer callable contingent coupon barrier notes due March 2, 2023 tied to the VanEck Vectors Semiconductor ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly contingent coupon at an annual rate of 14.5% if the fund closes above its 75% coupon barrier on the observation date for that quarter.
The notes may be called at par plus any coupon due at the option of the issuer on any quarterly coupon payment date.
Investors will receive par plus the final contingent coupon if the final level of the fund is above its 75% trigger level.
Otherwise, investors will be fully exposed to the losses of the underlier, payable either in shares or cash at the issuer’s option.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
|
| Issue: | Issuer callable contingent coupon barrier note
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| Underlying fund: | VanEck Vectors Semiconductor ETF
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| Amount: | $1 million
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| Maturity: | March 2, 2023
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| Coupon: | 14.5% annual rate, paid quarterly if fund closes above coupon barrier on related observation date
|
| Price: | Par
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| Payout at maturity: | Par plus contingent coupon unless fund closes below trigger level, in which case full exposure to losses, paid as 4.24 shares or as cash
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| Call option: | At par plus any coupon due at the option of the issuer on any quarterly coupon payment date
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| Initial level: | $236.08
|
| Coupon barrier level: | $177.06, 75% of initial levels
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| Trigger level: | $177.06, 75% of initial levels
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| Pricing date: | Feb. 25
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| Settlement date: | March 2
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 1%
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| Cusip: | 78013GJ97
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