RBC plans callable contingent coupon barrier notes tied to funds

By Devika Patel

Knoxville, Tenn., July 12 – Royal Bank of Canada plans to price callable contingent coupon barrier notes due July 16, 2020 linked to the least performing of the iShares MSCI Emerging Markets exchange-traded fund, the Health Care Select Sector SPDR fund and the SPDR S&P Oil & Gas Exploration & Production exchange-traded fund, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of 12.35% if each fund closes at or above its 65% coupon barrier level on an observation date for that quarter.

The notes will be callable on any quarterly observation date other than the final one beginning in October 2018.

The payout at maturity will be par plus the final coupon unless any fund finishes below the 65% trigger level, in which case investors will lose 1% for each 1% decline of the worst performing fund from its initial level.

RBC Capital Markets, LLC is the underwriter and JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC are placement agents.

The notes (Cusip: 78013XPU6) will price on July 13 and settle on July 18.

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