Published on 10/25/2018 in the Prospect News Structured Products Daily.
New Issue: RBC prices $3.5 million 21.5% contingent coupon callables on three stocks
By Susanna Moon
Chicago, Oct. 25 – Royal Bank of Canada priced $3.5 million of callable contingent coupon barrier notes due Oct. 13, 2022 linked to the lesser performing of the common stocks of Anheuser-Busch InBev SA/NV, Electronic Arts Inc. and Goldman Sachs Group, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes pay a contingent quarterly coupon at an annual rate of 21.5% if each stock closes at or above its 70% coupon barrier on the observation date for that quarter.
The notes are callable at par on any interest payment date.
The payout at maturity will be par unless any stock finishes below its 70% trigger level, in which case investors will be fully exposed to any losses of the worst performing stock.
RBC Capital Markets, LLC is the underwriter.
Issuer: | Royal Bank of Canada
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Issue: | Callable contingent coupon barrier notes
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Underlying assets: | Anheuser-Busch InBev SA/NV (Symbol: BUD), Electronic Arts Inc. (Symbol: EA) and Goldman Sachs Group, Inc. (Symbol: GS)
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Amount: | $3.5 million
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Maturity: | Oct. 13, 2022
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Coupon: | 21.5% annualized, payable quarterly if each stock closes at or above 70% coupon barrier on observation date for that quarter
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Price: | Par
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Payout at maturity: | Par unless any stock finishes below 70% trigger, in which case 1% loss per 1% decline of worst performing stock
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Call option: | At par on any interest payment date
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Initial levels: | $86.57 for Anheuser-Busch, $111.00 for Electronic Arts and $223.88 for Goldman
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Barrier levels: | $60.60 for Anheuser-Busch, $77.70 for Electronic Arts and $156.72 for Goldman, 70% of initial levels
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Pricing date: | Oct. 9
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Settlement date: | Oct. 12
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Agent: | RBC Capital Markets, LLC
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Fees: | None
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Cusip: | 78013XN38
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