Published on 11/9/2022 in the Prospect News Structured Products Daily.
New Issue: RBC prices $350,000 autocallable contingent coupon barrier notes on basket of four stocks
By Kiku Steinfeld
Chicago, Nov. 9 – Royal Bank of Canada priced $4.23 million of autocallable contingent coupon barrier notes due March 15, 2027 linked to an equally-weighted basket consisting of the stocks of Southwest Airlines Co., Delta Air Lines, Inc., Alaska Air Group, Inc. and United Airlines Holdings, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes pay a contingent coupon at the rate of 9.2% per year if the basket closes at or above its coupon trigger price, 75% of its initial price, on the observation date for that month.
The notes will be called at par if the basket closes at or above its initial price on any quarterly observation date starting on March 10, 2023.
If the notes are not called, the payout at maturity will be par unless the basket finishes below its 60% trigger price, in which case investors will be fully exposed to the decline.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
|
| Issue: | Autocallable contingent coupon barrier notes
|
| Underlying components: | Southwest Airlines Co., Delta Air Lines, Inc., Alaska Air Group, Inc. and United Airlines Holdings, Inc., basket equally weighted
|
| Amount: | $350,000
|
| Maturity: | March 15, 2027
|
| Coupon: | 9.2%, payable monthly if basket closes at or above coupon trigger price on observation date for that month
|
| Price: | Par
|
| Payout at maturity: | Par unless basket finishes below trigger price, in which case full exposure to decline
|
| Call: | At par if basket closes at or above initial price on any quarterly observation date starting on March 10, 2023
|
| Initial basket price: | $49.15 for Alaska, $32.55 for Delta, $41.03 for Southwest, $35.20 for United
|
| Coupon trigger price: | 75% of initial share price
|
| Trigger price: | 60% of initial share price
|
| Pricing date: | March 10
|
| Settlement date: | March 15
|
| Agent: | RBC Capital Markets, LLC
|
| Fees: | 3.75%
|
| Cusip: | 78016FFP4
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
