By Susanna Moon
Chicago, Jan. 29 – Royal Bank of Canada priced $500,000 of trigger phoenix autocallable notes due Jan. 31, 2017 linked to the worst performing of the Market Vectors Oil Services exchange traded fund and the Energy Select Sector SPDR Fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 8.1% if each fund closes at or above its barrier level, 65% of its initial level, on an observation date for that quarter.
If each fund closes at or above its initial level on any quarterly observation date, the notes will be called at par plus the contingent coupon.
If the notes are not called, the payout at maturity will be par plus the contingent coupon unless either fund finishes below its barrier level, in which case investors will fully exposed to any losses of the worst performing fund.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
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| Issue: | Trigger phoenix autocallable notes
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| Underlying funds: | Market Vectors Oil Services ETF, Energy Select Sector SPDR Fund
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| Amount: | $500,000
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| Maturity: | Jan. 31, 2017
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| Coupon: | 8.1% annualized for each quarterly period that each fund closes at or above barrier level on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | If each fund finishes at or above barrier level, par plus contingent coupon; otherwise, full exposure to any losses of worst performing fund
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| Call: | At par plus contingent coupon if each fund closes at or above initial level on any quarterly observation date
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| Initial levels: | $34.14 for oil fund, $77.76 for energy fund
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| Barrier levels: | $22.19 for oil fund, $50.54 for energy fund; 65% of initial levels
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| Pricing date: | Jan. 26
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| Settlement date: | Jan. 29
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| Underwriter: | RBC Capital Markets, LLC
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| Fees: | 1.75%
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| Cusip: | 78012KAZ0
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