Published on 10/27/2023 in the Prospect News Structured Products Daily.
New Issue: RBC prices $5.6 million 11.25% fixed coupon barrier notes tied to airline stock basket
By William Gullotti
Buffalo, N.Y., Oct. 27 – Royal Bank of Canada priced $5.6 million of 11.25% fixed coupon barrier notes due Oct. 24, 2024 tied to an equally weighted basket of stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the stocks of American Airlines Group Inc., Delta Air Lines, Inc., and United Airlines Holdings, Inc.
Interest is payable monthly.
The payout at maturity will be par unless the basket finishes below its 70% barrier level, in which case investors will lose 1% for every 1% decline from the basket’s initial level.
RBC Capital Markets, LLC is the agent.
Issuer: | Royal Bank of Canada
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Issue: | Fixed coupon barrier notes
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Underlying stocks: | American Airlines Group Inc., Delta Air Lines, Inc., United Airlines Holdings, Inc.; equal weights
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Amount: | $5.6 million
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Maturity: | Oct. 24, 2024
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Coupon: | 11.25% per year, payable monthly
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Price: | Par
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Payout at maturity: | Par unless basket finishes below barrier level, in which case investors will lose 1% for every 1% decline from the basket’s initial level
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Initial levels: | $11.45 for American, $32.71 for Delta, $36.03 for United
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Barrier level: | 70% of initial level
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Pricing date: | Oct. 19
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Settlement date: | Oct. 24
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Agent: | RBC Capital Markets, LLC
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Fees: | 1.25%
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Cusip: | 78016NW52
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