Published on 12/26/2018 in the Prospect News Structured Products Daily.
New Issue: RBC sells $7.96 million of trigger callable contingent yield notes tied to three indexes
By Devika Patel
Knoxville, Tenn., Dec. 26 – Royal Bank of Canada priced $7,955,500 of trigger callable contingent yield notes with daily coupon observation due June 24, 2021 linked to the least performing of the S&P 500 index, the Euro Stoxx 50 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon of 12.35% per year if each index’s closing level is at or above its coupon barrier, 65% of its initial level, on each day that quarter.
The notes are callable at par of $10 plus any coupon on each quarterly observation date other than the final one beginning on March 21, 2019.
If the notes are not called and each index finishes at or above its trigger level, 65% of its initial level, the payout at maturity will be par plus the coupon. Otherwise, investors will lose 1% for every 1% that the least-performing index’s final level is below its initial level.
UBS Financial Services Inc. and RBC Capital Markets, LLC are the underwriters.
| Issuer: | Royal Bank of Canada
|
| Issue: | Trigger callable contingent yield notes with daily coupon observation
|
| Underlying indexes: | S&P 500, Euro Stoxx 50 and Russell 2000
|
| Amount: | $7,955,500
|
| Maturity: | June 24, 2021
|
| Coupon: | 12.35% per year, payable quarterly if each index closes at or above its coupon barrier on each day that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | If each index finishes at or above trigger level, par plus coupon; otherwise, 1% loss for every 1% that least-performing index’s final level is below initial level
|
| Call option: | At par plus any coupon on each quarterly observation date other than final one beginning on March 21, 2019
|
| Initial levels: | 2,416.62 for S&P, 3,000.61 for Stoxx, 1,292.086 for Russell
|
| Coupon barriers: | 1,570.80 for S&P, 1,950.40 for Stoxx, 839.856 for Russell; 65% of initial levels
|
| Trigger levels: | 1,570.80 for S&P, 1,950.40 for Stoxx, 839.856 for Russell; 65% of initial levels
|
| Pricing date: | Dec. 21
|
| Settlement date: | Dec. 27
|
| Agents: | UBS Financial Services Inc. and RBC Capital Markets, LLC
|
| Fees: | 1.25%
|
| Cusip: | 78014H136
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
