Published on 1/3/2020 in the Prospect News Structured Products Daily.
New Issue: RBC prices $2.44 million contingent coupon barrier autocallables linked to ETFs
By Wendy Van Sickle
Columbus, Ohio, Jan. 3 – Royal Bank of Canada priced $2.44 million of autocallable contingent coupon barrier notes due Dec. 30, 2021 linked to the least performing of the SPDR S&P Oil & Gas Exploration & Production ETF and the VanEck Vectors Semiconductor ETF, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon at an annual rate of 9.1% if each asset closes at or above its coupon barrier level, 55% of its initial level, on the observation date for that quarter.
The notes will be called at par plus the coupon if each asset closes above its initial level on any observation date after one year.
The payout at maturity will be par plus any coupon due unless either asset finishes below its 55% trigger level, in which case investors will lose 1% for each 1% decline of the lesser-performing asset from its initial level.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
|
| Issue: | Autocallable contingent coupon barrier notes
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| Underlying assets: | SPDR S&P Oil & Gas Exploration & Production ETF and VanEck Vectors Semiconductor ETF
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| Amount: | $2,442,000
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| Maturity: | Dec. 30, 2021
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| Coupon: | 9.1%, payable quarterly if each asset closes at or above coupon barrier level on observation date for that quarter
|
| Price: | Par
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| Payout at maturity: | Par plus any coupon unless either asset finishes below trigger level, in which case 1% loss for each 1% decline of lesser-performing asset from initial level
|
| Call: | Automatically at par on any observation date after one year if each asset finishes above its initial level
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| Initial levels: | $142.46 for semiconductor, $23.39 for oil and gas
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| Coupon barrier levels: | $78.24 for semiconductor, $12.86 for oil and gas, 55% of initial levels
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| Trigger levels: | $78.24 for semiconductor, $12.86 for oil and gas, 55% of initial levels
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| Pricing date: | Dec. 27
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| Settlement date: | Dec. 31
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| Agent: | RBC Capital Markets, LLC
|
| Fees: | 2.25%
|
| Cusip: | 78015KKA1
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