By William Gullotti
Buffalo, N.Y., Sept. 13 – Royal Bank of Canada priced $6.9 million of autocallable contingent coupon barrier notes due Sept. 11, 2026 linked to an equally weighted stock basket consisting of Devon Energy Corp., Halliburton Co., Marathon Oil Corp. and Schlumberger Ltd., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 13% if the basket closes at or above its 70% coupon barrier on the relevant observation date.
The notes will be automatically called at par plus the coupon if the basket closes at or above its initial level on any quarterly call observation date after one year.
The payout at maturity will be par plus the final coupon if the basket finishes at or above the 70% knock-in level.
Otherwise, investors will be fully exposed to the basket’s decline from its initial level.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
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| Issue: | Autocallable contingent coupon barrier notes
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| Underlying basket: | Devon Energy Corp., Halliburton Co., Marathon Oil Corp., Schlumberger Ltd.; equal weights
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| Amount: | $6.9 million
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| Maturity: | Sept. 11, 2026
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| Coupon: | 13%, payable quarterly if the basket closes at or above coupon barrier on the corresponding observation date
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| Price: | Par
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| Payout at maturity: | Par plus the final coupon if basket finishes at or above knock-in level; otherwise, full exposure to basket decline from initial level
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| Call: | Automatically at par plus coupon if basket closes at or above initial level on any quarterly call observation date after one year
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| Initial levels: | $52.66 for Devon, $41.28 for Halliburton, $27.31 for Marathon, $60.17 for Schlumberger
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| Coupon barrier: | 70% of initial level
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| Knock-in level: | 70% of initial level
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| Pricing date: | Sept. 8
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| Settlement date: | Sept. 13
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 2.25%
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| Cusip: | 78016NA56
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