Published on 12/1/2016 in the Prospect News Structured Products Daily.
New Issue: RBC sells $9.11 million contingent interest autocallables on three indexes
By Devika Patel
Knoxville, Tenn., Dec. 1 – Royal Bank of Canada priced $9.11 million of contingent income callable securities due Nov. 30, 2017 linked to the worst performing of the Dow Jones Industrial Average, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes pay a contingent coupon at an annual rate of 7.55% if each index closes at or above its downside threshold level, 75% of its initial index level, on the determination date for that month.
The notes are callable at par on any quarterly determination date beginning Feb. 27.
If each index finishes at or above its downside threshold level, the payout at maturity will be par plus the final contingent coupon. If the final level of any index is less than its downside threshold level, investors will lose 1% for each 1% decline of the least-performing index.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
|
| Issue: | Contingent income callable securities
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| Underlying indexes: | Dow Jones Industrial Average, Russell 2000 and S&P 500
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| Amount: | $9,105,000
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| Maturity: | Nov. 30, 2017
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| Coupon: | 7.55% per year, payable monthly if each index closes at or above downside threshold level on determination date for that month
|
| Price: | Par
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| Payout at maturity: | If each index finishes at or above downside threshold level, par plus final contingent coupon; if final level of any index is less than downside threshold level, 1% loss for each 1% decline of lowest-performing index
|
| Call option: | At par on any quarterly determination date after Feb. 27
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| Initial index levels: | 19,152.14 for Dow, 1,347.203 for Russell and 2,213.35 for S&P
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| Downside thresholds: | 14,364.11 for Dow, 1,010.402 for Russell and 1,660.01 for S&P; 75% of initial levels
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| Pricing date: | Nov. 25
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| Settlement date: | Nov. 30
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| Agent: | RBC Capital Markets, LLC
|
| Fees: | 0.75%
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| Cusip: | 78012KVZ7
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