Published on 8/16/2023 in the Prospect News Structured Products Daily.
New Issue: RBC prices $7.31 million contingent coupon barrier notes linked to S&P, Stoxx
By Wendy Van Sickle
Columbus, Ohio, Aug. 16 – Royal Bank of Canada priced $7.31 million of autocallable contingent coupon barrier notes due Aug. 13, 2026 linked to the lesser performing of the S&P 500 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly coupon at an annual rate of 11% if each index closes at or above its coupon barrier level, 75% of its initial level, on the observation date for that period.
The notes will be called at par if each index closes at or above its initial level on any quarterly observation date after six months.
The payout at maturity will be par plus the final coupon, if any, unless either index finishes below the 65% trigger level, in which case investors will lose 1% for each 1% that the lesser-performing index declines from 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 indexes: | S&P 500 index, Euro Stoxx 50 index
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| Amount: | $7.31 million
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| Maturity: | Aug. 13, 2026
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| Coupon: | 11% annual rate, payable quarterly if each index 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 any coupon unless either index finishes below trigger level, in which case investors will lose 1% for each 1% that the lesser-performing index declines from initial level
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| Call: | Automatically at par if each index closes at or above its initial level on any quarterly observation date after six months
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| Initial index levels: | 4,467.71 for S&P, 4,317.33 for Stoxx
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| Coupon barriers: | 3,350.78 for S&P, 3,238.0 for Stoxx; 75% of initial index levels
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| Trigger levels: | 2,904.01 for S&P, 2,806.26 for Stoxx; 65% of initial index levels
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| Pricing date: | Aug. 10
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| Settlement date: | Aug. 15
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 0.2%
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| Cusip: | 78016NUK1
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