Published on 11/3/2015 in the Prospect News Structured Products Daily.
New Issue: RBC prices $2 million trigger phoenix autocallables tied to two indexes
By Susanna Moon
Chicago, Nov. 3 – Royal Bank of Canada priced $2 million of trigger phoenix autocallable notes due Feb. 3, 2017 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.
The notes will pay a contingent monthly coupon at an annual rate of 7.35% if each index closes at or above its coupon barrier level, 70% of its initial level, on an observation date for that month.
The notes will be called at par if each index closes at or above its initial level on any quarterly observation date.
The payout at maturity will be par plus the final contingent coupon unless either index finishes below its 70% trigger level, in which case investors will be fully exposed to any losses of the worse performing index.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
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| Issue: | Trigger phoenix autocallable notes
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| Underlying indexes: | S&P 500 index, Russell 2000 index
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| Amount: | $2 million
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| Maturity: | Feb. 3, 2017
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| Coupon: | 7.35% per year, payable monthly, if each index closes at or above its coupon barrier level on any observation date for that month
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above its trigger level, par plus the final contingent coupon; otherwise, investors will be fully exposed to any losses of the worse performing index
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| Call: | At par if each index closes at or above its initial level on any quarterly observation date
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| Initial levels: | 1,145.291 for Russell, 2,065.89 for S&P
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| Barrier levels: | 70% of initial levels
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| Pricing date: | Oct. 27
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| Settlement date: | Nov. 3
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| Agent: | RBC Capital Markets, LLC
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| Fees: | None
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| Cusip: | 78012KJB4
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