Published on 11/25/2014 in the Prospect News Structured Products Daily.
New Issue: RBC prices $13.72 million trigger phoenix callable notes on Russell 2000, S&P 500
By Jennifer Chiou
New York, Nov. 25 – Royal Bank of Canada priced $13,716,000 of trigger phoenix callable notes due Nov. 27, 2020 linked to the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
If each index closes at or above its 60% coupon barrier on any quarterly observation date, the notes will pay a contingent coupon at an annualized rate of 6% for that quarter.
The notes are callable at par on any observation date beginning on Feb. 24, 2015.
If the notes are not called, the payout at maturity will be par plus the contingent coupon unless the worst-performing index finishes below the 60% trigger level, in which case investors will be exposed to the decline of the worst-performing index.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
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| Issue: | Trigger phoenix callable notes
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| Underlying indexes: | Russell 2000 and S&P 500
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| Amount: | $13,716,000
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| Maturity: | Nov. 27, 2020
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| Coupon: | 6% per year, payable for that quarter if each index closes at or above its 60% coupon barrier on any quarterly observation date
|
| Price: | Par
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| Payout at maturity: | If each index finishes at or above its coupon barrier/trigger level, par plus contingent coupon; otherwise, par plus return of worst-performing index, with full exposure to losses
|
| Call option: | At par plus contingent coupon, if any, on any quarterly observation date beginning on Feb. 24, 2015
|
| Initial index levels: | 1,186.94 for Russell and 2,069.41 for S&P
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| Coupon barrier/trigger: | 712.164 for Russell and 1,241.65 for S&P, 60% of initial levels
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| Pricing date: | Nov. 24
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| Settlement date: | Nov. 26
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 2.25%
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| Cusip: | 78010U5H6
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