Published on 4/2/2018 in the Prospect News Structured Products Daily.
New Issue: RBC prices $787,000 8.8% contingent coupon autocalls tied to stocks
By Susanna Moon
Chicago, April 2 – Royal Bank of Canada priced $787,000 of autocallable contingent coupon barrier notes due March 19, 2021 linked to the common stocks of Amazon.com, Inc. and Walmart Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes pay a contingent quarterly coupon at an annual rate of 8.8% if each stock closes at or above its 65% coupon barrier on the observation date for that quarter.
The notes will be called at par if each stock closes at or above its initial level on any quarterly observation date.
The payout at maturity will be par unless either stock finishes below its 65% trigger level, in which case investors will be fully exposed to any losses of the worse performing stock.
RBC Capital Markets, LLC is the underwriter.
Issuer: | Royal Bank of Canada
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Issue: | Autocallable contingent coupon barrier notes
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Underlying stocks: | Walmart Inc. (Symbol: WMT) and Amazon.com, Inc. (Symbol: AMZN)
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Amount: | $787,000
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Maturity: | March 19, 2021
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Coupon: | 8.8% annualized, payable quarterly if each stock closes at or above 65% coupon barrier on observation date for that quarter
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Price: | Par
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Payout at maturity: | Par unless either stock finishes below 65% trigger, in which case 1% loss per 1% decline of worse performing stock
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Call: | At par if each stock closes at or above initial level on any quarterly observation date beginning Sept. 17, 2018
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Initial levels: | $89.17 for Walmart and $1,571.68 for Amazon
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Trigger levels: | $57.96 for Walmart and $1,021.59 for Amazon, 65% of initial level
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Pricing date: | March 16
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Settlement date: | March 21
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Agent: | RBC Capital Markets, LLC
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Fees: | 2.25%
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Cusip: | 78013XGV4
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