Published on 4/2/2018 in the Prospect News Structured Products Daily.
New Issue: RBC prices $775,000 5.75% contingent coupon autocalls tied to indexes
By Susanna Moon
Chicago, April 2 – Royal Bank of Canada priced $775,000 of autocallable contingent coupon barrier notes due Sept. 21, 2023 linked to the Dow Jones industrial average and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes pay a contingent quarterly coupon at an annual rate of 5.75% if each index closes at or above its 60% coupon barrier on the observation date for that quarter.
The notes will be called at par if each index closes at or above its initial level on any quarterly observation date.
The payout at maturity will be par unless either index finishes below its 60% trigger level, in which case investors will be fully exposed to any losses of the worse performing index.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
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| Issue: | Autocallable contingent coupon barrier notes
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| Underlying indexes: | Dow Jones industrial average and Russell 2000 index
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| Amount: | $775,000
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| Maturity: | Sept. 21, 2023
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| Coupon: | 5.75% annualized, payable quarterly if each index closes at or above 60% coupon barrier on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless either index finishes below 60% trigger, in which case 1% loss per 1% decline of worse performing index
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| Call: | At par if each index closes at or above initial level on any quarterly observation date beginning Sept. 20, 2018
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| Initial levels: | 24,946.51 for Dow and 1,586.048 for Russell
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| Trigger levels: | 14,967.91 for Dow and 951.629 for Russell, 60% of initial levels
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| Pricing date: | March 16
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| Settlement date: | March 21
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 2.25%
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| Cusip: | 78013XHW1
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