Published on 8/20/2013 in the Prospect News Structured Products Daily.
New Issue: RBC prices $2 million trigger phoenix callable notes linked to three indexes
By Susanna Moon
Chicago, Aug. 20 - Royal Bank of Canada priced $2 million of trigger phoenix callable notes due Aug. 20, 2015 linked to the worst performing of the S&P 500 index, the Russell 2000 index and the Euro Stoxx index, according to an FWP filing with the Securities and Exchange Commission.
If each index closes at or above its 75% trigger level on any quarterly observation date, the notes will pay contingent coupon at an annual rate of 8.8% for that quarter.
The notes are callable on any interest payment date at par plus the contingent coupon.
The payout at maturity will be par plus the contingent coupon unless the worst performing index finishes below the 75% trigger level, in which case investors will be exposed to any losses of the worst performing index.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
|
| Issue: | Trigger phoenix callable notes
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| Underlying indexes: | S&P 500, Russell 2000 and Euro Stoxx
|
| Amount: | $2 million
|
| Maturity: | Aug. 20, 2015
|
| Coupon: | 8.8% per year, payable quarterly if each index closes at or above trigger level on observation date for that quarter
|
| Price: | Par of $10.00
|
| Payout at maturity: | Par plus contingent coupon if each index finishes at or above trigger level; otherwise, full exposure to losses of least performing index
|
| Call option: | At par plus contingent coupon on any interest payment date
|
| Initial index levels: | 1,655.83 for S&P, 1,024.30 for Russell and 2,823.35 for Euro Stoxx
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| Trigger levels: | 1,241.87 for S&P, 768.23 for Russell and 2,117.51 for Euro Stoxx; 75% of initial levels
|
| Pricing date: | Aug. 16
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| Settlement date: | Aug. 21
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| Underwriter: | RBC Capital Markets, LLC
|
| Fees: | 2%
|
| Cusip: | 78010UAT4
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