Published on 8/21/2019 in the Prospect News Structured Products Daily.
New Issue: RBC sells $1.57 million callable contingent coupon barrier notes on indexes
By Sarah Lizee
Olympia, Wash., Aug. 21 – Royal Bank of Canada priced $1.57 million of issuer callable contingent coupon barrier notes due Aug. 22, 2024 linked to the S&P 500 index, the Dow Jones industrial average and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon at the rate of 4.1% per year if each index closes at or above its coupon barrier level, 50% of its initial level, on the observation date for that quarter.
The notes are callable at par on any interest payment date beginning Aug. 24, 2020.
The payout at maturity will be par unless either index finishes below its 50% trigger level, in which case investors will lose 1% for every 1% that the lesser-performing index declines from its initial level.
RBC Capital Markets, LLC is the underwriter.
Issuer: | Royal Bank of Canada
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Issue: | Callable contingent coupon barrier notes
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Underlying indexes: | S&P 500, Dow Jones industrial average and Russell 2000
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Amount: | $1,569,000
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Maturity: | Aug. 22, 2024
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Coupon: | 4.1% per year, payable each quarter if each index closes at or above coupon barrier level 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 trigger level, in which 1% loss for every 1% that lesser-performing index declines from initial level
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Call option: | Callable at par on any interest payment date beginning Aug. 24, 2020
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Initial index levels: | 2,923.65 for S&P, 1,508.850 for Russell, 26,135.79 for Dow
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Coupon barrier/triggers: | 1,461.83 for S&P, 754.425 for Russell, 13,067.90 for Dow; 50% of initial levels
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Pricing date: | Aug. 19
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Settlement date: | Aug. 22
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Underwriter: | RBC Capital Markets, LLC
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Fees: | 2.25%
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Cusip: | 78015KAA2
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