New Issue: RBC prices $4.46 million contingent income callable notes on S&P 500, Russell 2000

By Marisa Wong

Madison, Wis., Feb. 12 – Royal Bank of Canada priced $4.46 million of contingent coupon callable notes due Feb. 15, 2022 linked to the worst performing of the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

If each index closes at or above its coupon barrier, 60% of its initial level, on a quarterly observation date, investors will receive a contingent coupon at the rate of 7% per year.

The notes are callable on any quarterly observation date at par plus accrued interest, if any.

The payout at maturity is par unless either index closes below its 60% barrier level, in which case the payout will be par plus the return of the worst-performing index, with full exposure to losses.

RBC Capital Markets, LLC is the agent.

Issuer:	Royal Bank of Canada
Issue:	Contingent coupon callable notes
Underlying indexes:	S&P 500, Russell 2000
Amount:	$4.46 million
Maturity:	Feb. 15, 2022
Coupon:	7% per year, payable quarterly if each underlying closes at or above barrier level on observation date for that quarter
Price:	Par
Payout at maturity:	Par unless either index closes below barrier level, in which case full exposure to decline of worst-performing index
Call option:	At par on any quarterly observation date
Initial levels:	2,068.59 for S&P 500 and 1,203.179 for Russell 2000
Barrier levels:	1,241.15 for S&P 500 and 721.907 for Russell 2000; 60% of initial levels
Pricing date:	Feb. 10
Settlement date:	Feb. 13
Agent:	RBC Capital Markets, LLC
Fees:	2.5%
Cusip:	78012KBR7

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