RBC eyes autocallable barrier notes with recovery feature on indexes

By Sarah Lizee

Olympia, Wash., March 13 – Royal Bank of Canada plans to price 0% autocallable barrier notes with recovery feature due March 30, 2023 linked to the lesser performing of the Dow Jones Industrial Average and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be called at par plus 7% to 9% per year if each index closes at or above its initial level on any annual observation date.

If the final level of the lesser performing index is less than its initial level, but greater than or equal to its barrier level, 70% of its initial level, the payout at maturity will be the recovery amount of $1,080 per $1,000 principal amount.

If the final level of the lesser performing reference index is below its barrier level, investors will be fully exposed to the decline of the lesser performing index from its initial level.

RBC Capital Markets, LLC is the agent.

The notes will price on March 27.

The Cusip number is 78013X3J5.

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