By William Gullotti
Buffalo, N.Y., Dec. 6 – Royal Bank of Canada priced $2 million issuer callable contingent coupon barrier notes due Dec. 4, 2025 tied to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a monthly contingent coupon at an annual rate of 9.75% if the index closes at or above its 70% coupon barrier on the relevant observation date.
The notes may be called at par plus any coupon due at the option of the issuer on any quarterly observation date.
Investors will receive par plus the contingent coupon if the index finishes at or above its coupon barrier.
If the index finishes below its coupon barrier but at or above its 60% trigger level, the payout at maturity will be par. Otherwise, investors will be fully exposed to the index’s decline from its initial level.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
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| Issue: | Issuer callable contingent coupon barrier notes
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| Underlying index: | S&P 500 index
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| Amount: | $2 million
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| Maturity: | Dec. 4, 2025
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| Coupon: | 9.75% per year, paid monthly if index closes at or above coupon barrier on the related observation date
|
| Price: | Par
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| Payout at maturity: | Par plus contingent coupon if index finishes at or above coupon barrier; if index finishes below coupon barrier but not below trigger level, par; otherwise, full exposure to index decline from initial level
|
| Call option: | At par plus any coupon due at the option of the issuer on any quarterly observation date
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| Initial level: | 4,080.11
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| Coupon barrier level: | 2,856.08; 70% of initial level
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| Trigger level: | 2,448.07; 60% of initial level
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| Pricing date: | Nov. 30
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| Settlement date: | Dec. 5
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 0.7%
|
| Cusip: | 78016HCR9
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