Published on 8/2/2018 in the Prospect News Structured Products Daily.
New Issue: RBC prices $531,000 autocallable contingent coupon barrier notes on four tech stocks
By Sarah Lizee
Olympia, Wash., Aug. 2 – Royal Bank of Canada priced $531,000 of autocallable contingent coupon barrier notes due July 30, 2021 linked to the worst performing of the common stocks of Amazon.com, Inc., Facebook, Inc., Alphabet Inc. and Netflix Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly coupon at an annual rate of 8% if each stock closes above its coupon barrier level, 50% of its initial level, on the observation date for that quarter.
The notes will be called at par the coupon if each stock closes above its initial price on any quarterly observation date, starting Jan. 28, 2019.
The payout at maturity will be par plus the final coupon unless any stock finishes below the 50% trigger level, in which case investors will lose 1% for each 1% that the worst-performing stock’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 stocks: | Amazon.com, Inc., Facebook, Inc., Alphabet Inc. and Netflix Inc.
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| Amount: | $531,000
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| Maturity: | July 30, 2021
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| Coupon: | 8%, payable quarterly if each stock closes at or above coupon barrier on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless any stock finishes below trigger price, in which case par plus return of the least-performing stock
|
| Call: | Starting Jan. 28, 2019, automatically at par if each stock closes above initial price on any observation date
|
| Initial prices: | $1,817.27 for Amazon, $174.89 for Facebook, $1,252.89 for Alphabet and $355.21 for Netflix
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| Coupon barriers/triggers: | $908.64 for Amazon, $87.45 for Facebook, $626.45 for Alphabet and $177.61 for Netflix; 50% of initial prices
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| Pricing date: | July 27
|
| Settlement date: | July 31
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 2.25%
|
| Cusip: | 78013XQH4
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