Published on 7/29/2019 in the Prospect News Structured Products Daily.
New Issue: RBC sells $400,000 issuer callable contingent coupon barrier notes on ETF, stocks
By Kiku Steinfeld
Chicago, July 29 – Royal Bank of Canada priced $400,000 of issuer callable contingent coupon barrier notes due July 14, 2023 linked to the worst performing of the iShares Nasdaq Biotechnology exchange-traded fund and the common stocks of Merck & Co, Inc. and Johnson & Johnson, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly coupon at an annual rate of 12.3% if each component closes at or above its coupon barrier level, 70% of its initial level, on the observation date for that quarter.
The issuer may call the notes at par plus any contingent coupon otherwise due on any coupon payment date beginning in October.
The payout at maturity will be par plus the final coupon unless any component finishes below the 70% trigger level, in which case investors will lose 1% for each 1% that the worst-performing component’s final level is less than its initial level.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
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| Issue: | Issuer callable contingent coupon barrier notes
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| Underlying components: | iShares Nasdaq Biotechnology ETF., Merck & Co, Inc. and Johnson & Johnson
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| Amount: | $400,000
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| Maturity: | July 14, 2023
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| Coupon: | 12.3%, payable quarterly if each component closes at or above coupon barrier on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless any component finishes below trigger price, in which case par plus return of the least-performing component
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| Call: | At par plus any contingent coupon due on any coupon payment date beginning in October
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| Initial prices: | $106.67 for Nasdaq Biotechnology, $80.81 for Merck, $139.56 for Johnson & Johnson
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| Coupon barriers/triggers: | $74.67 for Nasdaq Biotechnology, $56.57 for Merck, $97.69 for Johnson & Johnson; 70% of initial prices
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| Pricing date: | July 11
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| Settlement date: | July 16
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| Agent: | RBC Capital Markets, LLC
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| Fees: | None
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| Cusip: | 78013XWX2
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