By Susanna Moon
Chicago, Sept. 14 – Royal Bank of Canada priced $480,000 of autocallable contingent coupon barrier notes due Sept. 12, 2019 linked to the SPDR S&P Oil & Gas Exploration & Production exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 9.2% if the fund closes at or above its 75% coupon barrier on the observation date for that quarter.
The notes will be called at par if the fund closes its initial level on any coupon payment date after six months.
The payout at maturity will be par unless the fund finishes below its 75% trigger level, in which case investors will be fully exposed to any losses.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
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| Issue: | Autocallable contingent coupon barrier notes
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| Underlying fund: | SPDR S&P Oil & Gas Exploration & Production ETF
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| Amount: | $480,000
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| Maturity: | Sept. 12, 2019
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| Coupon: | 9.2%, payable quarterly if fund closes at or above 75% coupon barrier on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless fund finishes below 75% trigger level, in which case par plus return
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| Call: | At par if each stock closes above initial level on any coupon payment date beginning March 8, 2018
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| Initial level: | $29.89
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| Trigger level: | $22.42, 75% of initial level
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| Pricing date: | Sept. 8
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| Settlement date: | Sept. 13
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| Agents: | RBC Capital Markets, LLC
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| Fees: | 1.75%
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| Cusip: | 78012K5V5
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