Published on 8/16/2018 in the Prospect News Structured Products Daily.
New Issue: RBC sells $500,000 of 10.5% contingent coupon callables tied to Pioneer
By Susanna Moon
Chicago, Aug. 16 – Royal Bank of Canada priced $500,000 of callable contingent coupon barrier notes due Aug. 14, 2019 linked to Pioneer National Resources Co. stock, according to a 424B2 filing with the Securities and Exchange Commission.
The notes pay a contingent quarterly coupon at an annual rate of 10.5% if the stock closes at or above its 70% coupon barrier on the observation date for that quarter.
The notes are callable at par on any quarterly observation date.
The payout at maturity will be par unless the stock finishes below its 70% trigger level, in which case investors will be fully exposed to any losses.
RBC Capital Markets, LLC is the underwriter.
Issuer: | Royal Bank of Canada
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Issue: | Issuer callable contingent coupon barrier notes
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Underlying asset: | Pioneer National Resources Co. (Symbol: PXD)
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Amount: | $500,000
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Maturity: | Aug. 14, 2019
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Coupon: | 10.5% annualized, payable quarterly if 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 stock finishes below 70% trigger, in which case 1% loss per 1% decline
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Call option: | At par on any review date beginning Jan. 28, 2019
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Initial level: | $185.65
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Trigger level: | $129.96, 70% of initial level
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Pricing date: | Aug. 9
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Settlement date: | Aug. 14
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Agents: | RBC Capital Markets, LLC
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Fees: | 1.05%
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Cusip: | 78013XTA6
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