Published on 9/25/2018 in the Prospect News Structured Products Daily.
New Issue: RBC sells $405,000 11.7% contingent coupon autocalls tied to tech stocks
By Susanna Moon
Chicago, Sept. 25 – Royal Bank of Canada priced $405,000 of autocallable contingent coupon barrier notes due Sept. 17, 2021 linked to the least 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 pay a contingent quarterly coupon at an annual rate of 11.7% if each stock closes at or above its 60% coupon barrier on the observation date for that quarter.
The notes will be called at par if each stock closes at or above its initial level on any quarterly observation date.
The payout at maturity will be par unless any stock finishes below its 60% trigger level, in which case investors will be fully exposed to any losses of the worst performing stock.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
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| Issue: | Autocallable contingent coupon barrier notes
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| Underlying assets: | Amazon.com Inc. (Symbol: AMZN), Facebook, Inc. (Symbol: FB), Alphabet, Inc. (Symbol: GOOG) and Netflix, Inc. (Symbol: NFLX)
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| Amount: | $405,000
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| Maturity: | Sept. 17, 2021
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| Coupon: | 11.7% annualized, payable quarterly if each stock closes at or above 60% coupon barrier on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless any stock finishes below 60% trigger, in which case 1% loss per 1% decline of worst performing stock
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| Call: | At par if each stock closes at or above initial level on any quarterly observation date beginning March 14, 2019
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| Initial levels: | $1,970.19 for Amazon, $162.32 for Facebook, $1,177.98 for Alphabet and $364.56 for Netflix
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| Barrier levels: | $1,182.11 for Amazon, $97.39 for Facebook, $706.79 for Alphabet and $218.74 for Netflix, 60% of initial levels
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| Pricing date: | Sept. 14
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| Settlement date: | Sept. 19
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 2.25%
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| Cusip: | 78013XE20
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