Published on 3/13/2024 in the Prospect News Structured Products Daily.
New Issue: RBC sells $2.23 million autocallable contingent coupon barrier notes on three ETFs
By William Gullotti
Buffalo, N.Y., March 13 – Royal Bank of Canada priced $2.23 million of autocallable contingent coupon barrier notes due March 5, 2026 linked to the performance of the Financial Select Sector SPDR Fund, the VanEck Semiconductor ETF and the Communication Services Select Sector SPDR Fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes pay a contingent quarterly coupon at the rate of 11% per year if the worst performing ETF closes at or above its trigger level, 65% of its initial level, on the relevant observation date.
The notes will be called at par plus coupon if the worst performing ETF closes at or above its initial level on any quarterly observation date after six months.
If the notes are not called, the payout at maturity will be par plus the final coupon unless the worst performing ETF finishes below its trigger level, in which case investors will receive a number of shares of that ETF equal to $1,000 divided by its initial level or, at the issuer’s option, the cash equivalent.
RBC Capital Markets, LLC is the agent.
Issuer: | Royal Bank of Canada
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Issue: | Autocallable contingent coupon barrier notes
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Underlying funds: | VanEck Semiconductor ETF, Communication Services Select Sector SPDR Fund, Financial Select Sector SPDR Fund
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Amount: | $2,227,000
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Maturity: | March 5, 2026
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Coupon: | 11%, payable quarterly if worst performing ETF closes at or above trigger level on the relevant observation date
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Price: | Par
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Payout at maturity: | If all ETFs finish at or above trigger level, par plus the final coupon; otherwise, receive a number of shares of the worst performer equal to $1,000 divided by that ETF’s initial level or, at the issuer’s option, the cash equivalent
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Call: | At par plus coupon if each ETF closes at or above initial level on any quarterly observation date after six months
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Initial levels: | $211.95 for VanEck, $40.34 for Financial, $79.36 for Communication
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Trigger levels: | $137.77 for VanEck, $26.22 for Financial, $51.58 for Communication; 65% of initial levels
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Pricing date: | Feb. 29
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Settlement date: | March 7
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Agent: | RBC Capital Markets, LLC
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Fees: | 1.75%
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Cusip: | 78015QHW4
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