By Wendy Van Sickle
Columbus, Ohio, Nov. 16 – Royal Bank of Canada priced $6.89 million trigger autocallable contingent yield notes due Nov. 19, 2020 linked to the lesser performing of the iShares Russell 2000 exchange-traded fund and the SPDR Euro Stoxx 50 ETF, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at an annualized rate of 7.32% if each ETF closes at or above the coupon barrier, 70% of the initial share price, on the observation date for that quarter.
The notes will be automatically called at par of $10 if each ETF closes at or above the initial share price on any quarterly observation date after six months.
If the notes are not called and the final share price of each ETF is greater than or equal to the 70% downside threshold, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% decline of the lesser performing ETF.
UBS Financial Services Inc. and RBC Capital Markets, LLC are the agents.
| Issuer: | Royal Bank of Canada
|
| Issue: | Trigger autocallable contingent yield notes
|
| Underlying ETFs: | iShares Russell 2000 exchange-traded fund and SPDR Euro Stoxx 50 ETF
|
| Amount: | $6,891,700
|
| Maturity: | Nov. 19, 2020
|
| Coupon: | 7.4%, payable quarterly if both ETFs close at or above coupon barriers on quarterly observation date
|
| Price: | Par of $1,000
|
| Call: | At par if both ETFs close at or above their initial levels on any quarterly observation date after one year
|
| Payout at maturity: | Par plus final coupon unless either ETF finishes below downside threshold level, in which case 1% loss for every 1% decline of the worse performing ETF
|
| Initial levels: | $146.21 for Russell, $40.82 for Stoxx
|
| Coupon barriers/downside thresholds: | $102.35 for Russell, $28.57 for Stoxx; 70% of initial levels
|
| Pricing date: | Nov. 14
|
| Settlement date: | Nov. 17
|
| Underwriters: | UBS Securities LLC and UBS Investment Bank
|
| Fees: | 2%
|
| Cusip: | 78013F669
|
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