Published on 3/25/2019 in the Prospect News Structured Products Daily.
New Issue: RBC sells $2.56 million callable contingent coupon barrier notes on indexes
By Wendy Van Sickle
Columbus, Ohio, March 25 – Royal Bank of Canada priced $2.56 million of issuer callable contingent coupon barrier notes due March 31, 2021 linked to the Euro Stoxx 50 index, the S&P 500 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 at the rate of 9.72% per year if each index closes at or above its coupon barrier level 75% of its initial level, on the observation date for that quarter.
The notes are callable at par on any interest payment date.
The payout at maturity will be par unless any index finishes below its 75% trigger level, in which case investors will lose 1% for every 1% that the least-performing index declines from its initial level.
RBC Capital Markets, LLC is the underwriter. JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC are placement agents.
| Issuer: | Royal Bank of Canada
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| Issue: | Issuer callable contingent coupon barrier notes
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| Underlying indexes: | Euro Stoxx 50, S&P 500 and Russell 2000
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| Amount: | $2,555,000
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| Maturity: | March 31, 2021
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| Coupon: | 9.72% per year, payable quarterly if each index closes at or above coupon barrier level on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless any index finishes below trigger level, in which 1% loss for every 1% that lesser-performing index declines from initial level
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| Call option: | Callable at par on any interest payment date
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| Initial index levels: | 1,505.923 for Russell, 2,800.71 for S&P, 3,305.73 for Stoxx
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| Coupon barriers: | 1,129.442 for Russell, 2,100.53 for S&P, 2,497.3 for Stoxx; 75% of initial levels
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| Triggers: | 1,129.442 for Russell, 2,100.53 for S&P, 2,497.3 for Stoxx; 75% of initial levels
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| Pricing date: | March 21
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| Settlement date: | March 26
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| Underwriter: | RBC Capital Markets, LLC with JPMorgan Chase Bank, NA and J.P. Morgan Securities as placement agents
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| Fees: | 1.5%
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| Cusip: | 78013X3W6
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