Published on 4/23/2024 in the Prospect News Structured Products Daily.
New Issue: RBC sells $2 million autocallable contingent coupon buffered notes on bank stocks
By Wendy Van Sickle
Columbus, Ohio, April 23 – Royal Bank of Canada sold $2 million of autocallable contingent coupon buffered notes with daily observation due April 22, 2027 linked to the lesser performing of the stocks of Bank of America Corp., Goldman Sachs Group, Inc. and JPMorgan Chase & Co., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly coupon at an annual rate of 11.1% if each stock closes at or above its coupon barrier level, 70% of its initial level, every day that period.
The notes will be called at par plus the coupon if each stock closes at or above its initial level on any quarterly observation date after six months.
The payout at maturity will be par plus the final coupon unless either stock finishes below the 70% buffer level, in which case investors will lose 1% for each 1% that the lesser-performing stock’s final level beyond the 30% buffer.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
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| Issue: | Autocallable contingent coupon barrier notes with daily observation
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| Underlying stocks: | Bank of America Corp., Goldman Sachs Group, Inc. and JPMorgan Chase & Co.
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| Amount: | $2 million
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| Maturity: | April 22, 2027
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| Coupon: | 11.1% annual rate, payable quarterly if each stock closes at or above coupon barrier level every day that period
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| Level: | Par
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| Payout at maturity: | Par plus coupon unless either stock finishes below buffer level, in which case investors will lose 1% for each 1% that the lesser-performing stock’s finishes beyond the 30% buffer
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| Call: | Automatically at par if each stock closes at or above its initial level on any quarterly observation date after six months
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| Initial stock levels: | $34.68 for BofA, $396.86 for Goldman, $180.80 for JPMorgan
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| Coupon barrier levels: | $24.28 for BofA, $277.80 for Goldman, $126.56 for JPMorgan; 70% of initial levels
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| Buffer levels: | $24.28 for BofA, $277.80 for Goldman, $126.56 for JPMorgan; 70% of initial levels
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| Pricing date: | April 17
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| Settlement date: | April 22
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 0%
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| Cusip: | 78017FUM3
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