Published on 3/19/2024 in the Prospect News Structured Products Daily.
New Issue: RBC sells $10 million autocallable contingent coupon barrier notes on three ETFs
By William Gullotti
Buffalo, N.Y., March 19 – Royal Bank of Canada priced $10 million of autocallable contingent coupon barrier notes due March 11, 2027 linked to the performance of the Utilities Select Sector SPDR Fund, the VanEck Gold Miners ETF and the SPDR S&P Regional Banking ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes pay a contingent monthly coupon at the rate of 14.25% per year if the worst performing ETF closes at or above its trigger level, 60% 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 monthly observation date after three 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 be fully exposed to the decline of the worst performing ETF 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
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| Underlying funds: | VanEck Gold Miners ETF, SPDR S&P Regional Banking ETF, Utilities Select Sector SPDR Fund
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| Amount: | $10 million
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| Maturity: | March 11, 2027
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| Coupon: | 14.25%, payable monthly 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, lose 1% for each 1% decline of worst performing ETF from initial level
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| Call: | At par plus coupon if each ETF closes at or above initial level on any monthly observation date after three months
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| Initial levels: | $29.61 for VanEck, $49.53 for SPDR S&P, $65.39 for Utilities Select
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| Trigger levels: | $17.77 for VanEck, $29.72 for SPDR S&P, $38.15 for Utilities Select; 60% of initial levels
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| Strike date: | March 7
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| Pricing date: | March 12
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| Settlement date: | March 15
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 0.033%
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| Cusip: | 78017FML4
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