By William Gullotti
Buffalo, N.Y., July 15 – Royal Bank of Canada priced $1 million of 8.45% autocallable fixed coupon barrier notes due July 17, 2025 linked to the Energy Select Sector SPDR Fund, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is paid monthly.
The notes will be called at par if the ETF closes at or above its initial share price on any quarterly observation date after six months.
If the notes are not called and the ETF finishes at or above its 50% trigger price, the payout at maturity will be par. Otherwise, investors will receive a number of shares equal to $10,000 divided by the initial share price or, at the issuer’s option, the cash value of those shares.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
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| Issue: | Autocallable fixed coupon barrier notes
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| Underlying fund: | Energy Select Sector SPDR Fund
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| Amount: | $1 million
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| Maturity: | July 17, 2025
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| Coupon: | 8.45% annual rate, paid monthly
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| Price: | Par of $10,000
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| Payout at maturity: | Par unless ETF finishes below trigger price, in which case investors will receive 145.14 shares per note or, at the issuer’s option, the cash equivalent
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| Call: | At par if ETF closes at or above initial share price on any quarterly observation date after six months
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| Initial share price: | $68.90
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| Trigger price: | $34.45; 50% of initial share price
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| Pricing date: | July 12
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| Settlement date: | July 15
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| Underwriter: | RBC Capital Markets, LLC
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| Fees: | 2%
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| Cusip: | 78015QBN0
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