Published on 11/27/2019 in the Prospect News Structured Products Daily.
New Issue: RBC sells $3.74 million contingent memory coupon barrier autocalls on stocks
By Kiku Steinfeld
Chicago, Nov. 27 – Royal Bank of Canada priced $3.74 million of autocallable contingent coupon barrier notes with memory coupon due May 17, 2021 linked to the common stock of AT&T Inc. and Cisco Systems, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes pay a contingent quarterly coupon at an annual rate of 9.75% if each stock closes at or above its 70% coupon barrier on the observation date for that quarter, plus any previously unpaid coupons.
The notes will be automatically called at par plus the contingent coupon and any previously unpaid coupons if both stocks close above their initial levels on any quarterly observation date.
The payout at maturity will be par unless any stock finishes below its 70% trigger level, in which case investors will receive a number of shares of the lesser performing stock equal to $1,000 divided by the initial share price or, at the issuer’s option, the cash equivalent.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
|
| Issue: | Autocallable contingent coupon barrier notes with memory coupon
|
| Underlying stocks: | AT&T Inc. and Cisco Systems, Inc.
|
| Amount: | $3,741,000
|
| Maturity: | May 17, 2021
|
| Coupon: | 9.75%, payable quarterly if each stock closes at or above coupon barrier on observation date for that quarter, plus any previously unpaid coupons
|
| Price: | Par
|
| Payout at maturity: | Par unless any stock finishes below trigger level, in which case investors will receive a number of shares of lesser performing stock equal to $1,000 divided by the initial share price or, at issuer’s option, cash equivalent
|
| Call: | Automatically at par plus coupon and any previously unpaid coupons if both stocks close above their initial levels on any quarterly observation date
|
| Initial levels: | $39.17 for AT&T, $48.37 for Cisco
|
| Trigger/coupon barriers: | $27.42 for AT&T, $33.86 for Cisco, 70% of initial levels
|
| Pricing date: | Nov. 12
|
| Settlement date: | Nov. 15
|
| Agent: | RBC Capital Markets, LLC
|
| Fees: | 2.25%
|
| Cusip: | 78013GTH8
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
