Published on 1/15/2020 in the Prospect News Structured Products Daily.
New Issue: RBC sells $230,000 autocallable contingent coupon barrier notes on three ETFs
Chicago, Jan. 15 – Royal Bank of Canada priced $230,000 of autocallable contingent coupon barrier notes due Dec. 29, 2022 linked to the least performing of the Energy Select Sector SPDR Fund, the Utilities Select Sector SPDR Fund and the SPDR S&P Oil & Gas Exploration & Production ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a monthly coupon at an annual rate of 9% if each fund closes at or above its coupon barrier level, 70% of its initial price, on the relevant observation date.
The notes will be called at par plus the coupon if each fund closes at or above its initial price on any quarterly observation date.
The payout at maturity will be par plus any final coupon unless any fund finishes below the 60% trigger price, in which case investors will lose 1% for each 1% that the least-performing fund’s final level is less than its initial level.
RBC Capital Markets, LLC is the agent.
Issuer: | Royal Bank of Canada
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Issue: | Autocallable contingent coupon barrier notes
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Underlying ETFs: | Energy Select Sector SPDR Fund, the Utilities Select Sector SPDR Fund and the SPDR S&P Oil & Gas Exploration & Production ETF
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Amount: | $230,000
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Maturity: | Dec. 29, 2022
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Coupon: | 9%, payable monthly if each fund closes at or above coupon barrier level on observation date for that period
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Price: | Par
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Payout at maturity: | Par plus coupon unless any fund finishes below trigger price, in which case investors will lose 1% for each 1% that the lesser-performing fund’s final level is less than its initial level
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Call: | Automatically at par if each fund closes at or above its initial share price on any quarterly observation date
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Initial fund prices: | $61.99 for Energy, $63.99 for Utilities, $23.72 for Oil
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Coupon barriers: | $43.39 for Energy, $44.79 for Utilities, $16.60 for Oil, 70% of initial levels
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Trigger prices: | $37.19 for Energy, $38.39 for Utilities, $14.23 for Oil, 60% of initial levels
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Pricing date: | Dec. 23
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Settlement date: | Dec. 27
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Agent: | RBC Capital Markets, LLC
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Fees: | 3.25%
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Cusip: | 78015KFM1
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