Published on 6/24/2019 in the Prospect News Structured Products Daily.
New Issue: RBC sells $2 million contingent coupon barrier autocallables on indexes, ETF
By Sarah Lizee
Olympia, Wash., June 24 – Royal Bank of Canada priced $2 million of autocallable contingent coupon barrier notes due June 25, 2024 linked to the lesser performing of the iShares MSCI Emerging Markets exchange-traded fund, the Russell 2000 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 7.5% if each asset closes at or above its coupon barrier level, 80% of its initial level, on the review date for that quarter.
The notes will be called at par plus the coupon if each asset closes at or above its initial level on any quarterly review date after one year.
The payout at maturity will be par unless any asset finishes below the 60% trigger level, in which case investors will lose 1% for each 1% that the lesser performing asset’s final level is less than its initial level.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
|
| Issue: | Autocallable contingent coupon barrier notes
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| Underlying assets: | iShares MSCI Emerging Markets exchange-traded fund, Russell 2000 index and Euro Stoxx 50 index
|
| Amount: | $2 million
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| Maturity: | June 25, 2024
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| Coupon: | 7.5%, payable quarterly if each asset closes at or above coupon barrier level on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless any asset finishes below trigger level, in which case 1% loss for each 1% decline of lesser performing asset from initial level
|
| Call: | At par plus coupon if each asset closes at or above its initial level on a review date after one year
|
| Initial levels: | $42.91 for ETF, 1,563.495 for Russell, 3,468.08 for Stoxx
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| Coupon barrier levels: | $34.33 for ETF, 2,080.85 for Russell, 2,774.46 for Stoxx; 80% of initial levels
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| Trigger levels: | $25.75 for ETF, 938.097 for Russell, 2,080.85 for Stoxx; 60% of initial levels
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| Pricing date: | June 20
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| Settlement date: | June 25
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 3.25%
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| Cusip: | 78013XUY2
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