Published on 4/2/2024 in the Prospect News Structured Products Daily.
New Issue: RBC sells $1.19 million contingent coupon barrier autocallables on tech stock basket
By William Gullotti
Buffalo, N.Y., April 2 – Royal Bank of Canada priced $1.19 million of autocallable contingent coupon barrier notes due March 23, 2028 linked to an equally weighted basket of the stocks of Advanced Micro Devices, Inc., Nvidia Corp., PayPal Holdings, Inc., Shopify Inc. and Tesla, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 10% if the basket closes at or above its 70% coupon barrier on the relevant observation date.
The notes will be automatically called at par plus the coupon if the basket closes above its initial share price on any quarterly call observation date after one year.
The payout at maturity will be par plus the final coupon if the basket finishes at or above the coupon barrier.
If the basket finishes below the coupon barrier but at or above the 60% knock-in level, the payout at maturity will be par. Otherwise, investors will be fully exposed to the basket’s decline from its initial level.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
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| Issue: | Autocallable contingent coupon barrier notes
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| Underlying basket: | Advanced Micro Devices, Inc., Nvidia Corp., PayPal Holdings, Inc., Shopify Inc., Tesla, Inc.; equal weights
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| Amount: | $1,185,000
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| Maturity: | March 23, 2028
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| Coupon: | 10%, payable quarterly if the basket closes at or above coupon barrier on the corresponding observation date
|
| Price: | Par
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| Payout at maturity: | Par plus the final coupon if basket finishes at or above coupon barrier; if basket finishes below coupon barrier but at or above knock-in level, par; otherwise, full exposure to basket decline from initial level
|
| Call: | Automatically at par plus coupon if basket closes at or above initial share price on any quarterly call observation date after one year
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| Initial prices: | $179.73 for AMD, $903.72 for Nvidia, $65.05 for PayPal, $81.33 for Shopify, $175.66 for Tesla
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| Coupon barrier: | 70% of initial level
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| Knock-in level: | 60% of initial level
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| Pricing date: | March 20
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| Settlement date: | March 25
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 3.25%
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| Cusip: | 78017FNB5
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