Published on 7/18/2018 in the Prospect News Structured Products Daily.
New Issue: RBC sells $2.6 million 12.35% contingent coupon callables tied to funds
By Susanna Moon
Chicago, July 18 – Royal Bank of Canada priced $2.6 million of callable contingent coupon barrier notes due July 16, 2020 linked to the least performing of the iShares MSCI Emerging Markets ETF, Health Care Select Sector SPDR Fund and SPDR S&P Oil & Gas Exploration & Production ETF, according to a 424B2 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 on the observation date for that quarter.
The notes are callable at par on any quarterly observation date.
The payout at maturity will be par unless any fund finishes below its 65% trigger level, in which case the payout will be par plus the return of the worst performing fund with full exposure to any losses.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
|
| Issue: | Issuer callable contingent coupon barrier notes
|
| Underlying indexes: | iShares MSCI Emerging Markets ETF, Health Care Select Sector SPDR Fund and SPDR S&P Oil & Gas Exploration & Production ETF
|
| Amount: | $2,595,000
|
| Maturity: | July 16, 2020
|
| Coupon: | 12.35% annualized, payable quarterly if each fund closes at or above 65% coupon barrier on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless any fund finishes below 65% trigger, in which case 1% loss per 1% decline of worse performing fund
|
| Call option: | At par on any quarterly observation date other than final date
|
| Initial levels: | $43.85 for EM fund, $87.40 for health care fund and $43.19 for oil fund
|
| Barrier levels: | $28.50 for EM fund, $56.81 for health care fund and $28.07 for oil fund, 65% of initial levels
|
| Pricing date: | July 13
|
| Settlement date: | July 18
|
| Agent: | RBC Capital Markets, LLC
|
| Fees: | 1.5%
|
| Cusip: | 78013XPU6
|
|
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
