Published on 8/15/2022 in the Prospect News Structured Products Daily.
New Issue: RBC prices $3.27 million contingent coupon buffer notes linked to S&P, Dow
By William Gullotti
Buffalo, N.Y., Aug. 15 – Royal Bank of Canada priced $3.27 million of contingent coupon buffer notes due Aug. 13, 2027 linked to the lesser performing of the S&P 500 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly coupon at an annual rate of 6.25% if each index closes at or above its coupon barrier level, 70% of its initial level, on the observation date for that period.
The payout at maturity will be par plus the final coupon unless either index finishes below the 85% trigger level, in which case investors will lose 1% for each 1% that the lesser-performing index declines below 15%.
RBC Capital Markets, LLC is the agent.
Issuer: | Royal Bank of Canada
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Issue: | Contingent coupon buffer notes
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Underlying indexes: | S&P 500 index, Dow Jones industrial average
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Amount: | $3,265,000
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Maturity: | Aug. 13, 2027
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Coupon: | 6.25%, payable quarterly if each index closes at or above coupon barrier level on observation date for that period
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Price: | Par
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Payout at maturity: | Par plus coupon unless either index finishes below trigger level, in which case investors will lose 1% for each 1% that the lesser-performing index finishes beyond the 15% buffer
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Initial index levels: | 4,210.24 for S&P, 33,309.51 for Dow
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Coupon barriers: | 2,947.17 for S&P, 23,316.66 for Dow; 70% of initial index levels
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Trigger levels: | 3,578.7 for S&P, 28,313.08 for Dow; 85% of initial index levels
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Pricing date: | Aug. 10
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Settlement date: | Aug. 15
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Agent: | RBC Capital Markets, LLC
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Fees: | 3%
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Cusip: | 78016FQ64
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