Published on 4/28/2015 in the Prospect News Structured Products Daily.
New Issue: RBC prices $775,000 trigger phoenix autocallables on oil, energy funds
By Susanna Moon
Chicago, April 28 – Royal Bank of Canada priced $775,000 of trigger phoenix autocallable notes due May 2, 2017 linked to the worst performing of the Market Vectors Oil Services exchange-traded fund and Energy Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 8% if each fund closes at or above its 75% coupon barrier on an observation date for that quarter.
The notes will be called at par plus the contingent coupon if each fund closes at or above its initial price on any quarterly observation date.
The payout at maturity will be par plus the contingent coupon unless any fund finishes below its 75% barrier level, in which case investors will be fully exposed to any losses of the worst performing fund.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
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| Issue: | Trigger phoenix autocallable notes
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| Underlying funds: | Market Vectors Oil Services ETF, Energy Select Sector SPDR fund
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| Amount: | $775,000
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| Maturity: | May 2, 2017
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| Coupon: | 8% per year if each fund closes at or above its barrier price on a quarterly observation date
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| Price: | Par
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| Payout at maturity: | If each fund finishes at or above barrier level, par plus contingent coupon; otherwise, full exposure to losses of worst performing stock
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| Call: | At par plus contingent coupon if each fund closes at or above its initial price on any quarterly observation date
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| Initial levels: | $37.59 for oil fund, $81.89 for energy fund
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| Barrier levels: | $28.19 for oil fund, $61.42 for energy fund; 75% of initial levels
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| Pricing date: | April 27
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| Settlement date: | April 30
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| Underwriter: | RBC Capital Markets, LLC
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| Fees: | 1.75%
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| Cusip: | 78013GAA3
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