Chicago, May 11 – Royal Bank of Canada priced $580,000 of autocallable contingent coupon barrier notes with memory coupon due June 20, 2025 linked to the performance of a basket of three equity securities, according to a 424B2 filing with the Securities and Exchange Commission.
The equally weighted basket consists of the stocks of American Airlines Group Inc., Delta Air Lines, Inc. and United Airlines Holdings, Inc.
The notes pay a contingent quarterly coupon at the rate of 15.25% per year if the basket closes at or above its coupon barrier level, 60% of its initial level, on the relevant observation date. Previously unpaid coupons, if any, will be automatically included whenever a coupon is paid.
The notes will be called at par plus coupon if the basket closes at or above its initial level on any quarterly observation date starting after six months.
If the notes are not called and the basket finishes at or above its 60% trigger level, the payout at maturity will be par plus the final coupon.
Otherwise, investors will be fully exposed to the basket’s decline from its initial level.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
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| Issue: | Autocallable contingent coupon barrier notes with memory coupon
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| Underlying basket: | American Airlines Group Inc., Delta Air Lines, Inc. and United Airlines Holdings, Inc., equal weights
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| Amount: | $580,000
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| Maturity: | June 20, 2025
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| Coupon: | 15.25% per year, payable quarterly if the basket closes at or above coupon barrier level on the relevant observation date; coupon payment events will automatically include any previously unpaid coupons
|
| Price: | Par
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| Payout at maturity: | If the basket finishes at or above trigger level, par plus all unpaid coupons; otherwise, investors will be fully exposed to decline
|
| Call: | At par plus coupon if the basket closes at or above initial level on any quarterly observation date starting after six months
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| Initial levels: | $12.95 for American, $31.38 for Delta, $36.99 for United
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| Coupon barrier level: | 60% of initial level
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| Trigger level: | 60% of initial level
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| Pricing date: | June 14, 2022
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| Settlement date: | June 17, 2022
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 2.25%
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| Cusip: | 78016FLT9
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