Published on 8/2/2021 in the Prospect News Structured Products Daily.
New Issue: RBC prices $528,500 trigger autocallable contingent yield notes on basket of ten stocks
By William Gullotti
Buffalo, N.Y., Aug. 2 – Royal Bank of Canada priced $528,500 of trigger autocallable contingent yield notes due June 8, 2023 linked to an equally weighted basket of stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of Popular, Inc., Citigroup Inc., Devon Energy Corp., DexCom, Inc., FedEx Corp., General Electric Co., Generac Holdings, Inc., L Brands, Inc., United Airlines Holdings, Inc. and Uber Technologies, Inc.
The notes will pay a contingent quarterly coupon at the rate of 9.35% per year if the basket closes at or above its coupon barrier, 75% of its initial level, on the related observation date.
The notes will be automatically called at par plus the coupon if the basket closes at or above its initial level on any quarterly call observation date after six months.
If the notes are not called and the final basket level is greater than or equal to the downside threshold level, 75% of the initial level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the basket declines from its initial level.
UBS Financial Services LLC and RBC Capital Markets, LLC are the agents.
| Issuer: | Royal Bank of Canada
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| Issue: | Trigger autocallable contingent yield notes
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| Underlying stocks: | Popular, Inc., Citigroup Inc., Devon Energy Corp., DexCom, Inc., FedEx Corp., General Electric Co., Generac Holdings, Inc., L Brands, Inc., United Airlines Holdings, Inc., Uber Technologies, Inc.; equally weighted
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| Amount: | $528,500
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| Maturity: | June 8, 2023
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| Coupon: | 9.35% per year, paid quarterly if the basket closes at or above coupon barrier on the related observation date
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| Price: | Par of $10
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| Payout at maturity: | Par unless the basket finishes below downside threshold level, in which case 1% loss for each 1% decline from initial level
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| Call: | Automatically at par plus coupon if the basket closes at or above the initial level on any quarterly call observation date after six months
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| Initial level: | $81.68 for Popular, Inc., $79.49 for Citigroup Inc., $31.66 for Devon Energy Corp., $382.91 for DexCom, Inc., $302.12 for FedEx Corp., $13.96 for General Electric Co., $327.40 for Generac Holdings, Inc., $65.71 for L Brands, Inc., $56.93 for United Airlines Holdings, Inc., $50.18 for Uber Technologies, Inc.
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| Coupon barrier level: | 75% of initial level
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| Downside threshold: | 75% of initial level
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| Pricing date: | June 4
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| Settlement date: | June 9
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| Agents: | UBS Financial Services LLC and RBC Capital Markets, LLC
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| Fees: | None
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| Cusip: | 78014U236
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