Published on 5/2/2017 in the Prospect News Structured Products Daily.
New Issue: RBC sells $2 million contingent coupon barrier autocallables on MSCI EAFE, EM funds
By Susanna Moon
Chicago, May 2 – Royal Bank of Canada priced $2 million of autocallable contingent coupon barrier notes due April 29, 2021 linked to the iShares MSCI EAFE exchange-traded fund and the iShares MSCI Emerging Markets 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 7.1% if each fund closes at or above the 75% trigger level on the observation date for that quarter.
The notes will be called at par if each fund closes at or above its initial price on any quarterly observation date after one year.
The payout at maturity will be par unless either fund finishes below the 75% trigger level, in which case investors will be fully exposed to any losses of the worse performing fund.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
|
| Issue: | Autocallable contingent coupon barrier notes
|
| Underlying funds: | iShares MSCI EAFE ETF, iShares MSCI Emerging Markets ETF
|
| Amount: | $2 million
|
| Maturity: | April 29, 2021
|
| Coupon: | 7.1%, payable quarterly if each fund closes at or above trigger level on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless either fund finishes below trigger, in which case 1% loss for each 1% decline of worse performing fund
|
| Call: | At par if fund closes at or above initial price on any quarterly observation date beginning April 25, 2018
|
| Initial levels: | $63.99 for EAFE fund, $40.20 for EM fund
|
| Trigger levels: | $47.99 for EAFE fund, $30.15 for EM fund, 75% of initial levels
|
| Pricing date: | April 25
|
| Settlement date: | April 28
|
| Agents: | RBC Capital Markets, LLC
|
| Fees: | 2.5%
|
| Cusip: | 78012KL62
|
|
|
|
|
© 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.
