Published on 2/29/2016 in the Prospect News Structured Products Daily.
New Issue: RBC prices $5.73 million trigger phoenix autocallables linked to S&P, Russell
By Angela McDaniels
Tacoma, Wash., Feb. 29 – Royal Bank of Canada priced $5.73 million of trigger phoenix autocallable optimization securities due Feb. 28, 2019 linked to the lesser performing of the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 8.5% per year if each index closes at or above its barrier level, 70% of its initial level, on the observation date for that quarter.
Beginning Aug. 25, 2016, the notes will be called at par if each index closes at or above its initial level on any quarterly observation date.
If the notes are not called and each index finishes at or above its barrier level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will be exposed to the decline of the lesser-performing index.
UBS Financial Services Inc. and RBC Capital Markets, LLC are the agents.
| Issuer: | Royal Bank of Canada
|
| Issue: | Trigger phoenix autocallable optimization securities
|
| Underlying indexes: | Russell 2000 and S&P 500
|
| Amount: | $5,727,250
|
| Maturity: | Feb. 28, 2019
|
| Coupon: | 8.5% per year, payable quarterly if each index closes at or above barrier level on observation date for that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus contingent coupon if each index finishes at or above barrier level; otherwise, full exposure to decline of lesser-performing index
|
| Call: | Automatically at par if each index closes at or above initial level on any quarterly observation date from Aug. 25, 2016 onward
|
| Initial index levels: | 1,951.70 for S&P 500 and 1,031.576 for Russell 2000
|
| Barrier levels: | 1,366.19 for S&P 500 and 722.103 for Russell 2000; 70% of initial levels
|
| Pricing date: | Feb. 25
|
| Settlement date: | Feb. 29
|
| Agents: | UBS Financial Services Inc. and RBC Capital Markets, LLC
|
| Fees: | 2%
|
| Cusip: | 78013C690
|
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