New York, April 24 – Royal Bank of Canada priced $1.61 million of trigger autocallable contingent yield notes due April 23, 2020 linked to the SPDR S&P Oil & Gas Exploration & Production exchange-traded fund, 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 9% if the ETF closes at or above its coupon barrier, 70.5% of the initial share price, on the observation date for that quarter.
The notes will be automatically called at par of $10 if the ETF closes at or above its initial share price on any quarterly observation date after six months.
If the notes are not called and the final share price of the ETF is greater than or equal to the 70.5% downside threshold, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% decline of the ETF.
UBS Financial Services Inc. and RBC Capital Markets, LLC are the agents.
| Issuer: | Royal Bank of Canada
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| Issue: | Trigger autocallable contingent yield notes
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| Underlying ETF: | SPDR S&P Oil & Gas Exploration & Production exchange-traded fund
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| Amount: | $1,614,300
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| Maturity: | April 23, 2020
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| Coupon: | 9%, payable quarterly if ETF closes at or above coupon barrier on quarterly observation date
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| Price: | Par of $10
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| Call: | At par if ETF closes at or above initial price on any quarterly observation date after six months
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| Payout at maturity: | Par plus final coupon unless ETF finishes below downside threshold, in which case 1% loss for every 1% decline
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| Initial price: | $38.86
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| Coupon barrier: | $27.40; 70.5% of initial price
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| Downside threshold: | $27.40; 70.5% of initial price
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| Pricing date: | April 20
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| Settlement date: | April 25
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| Underwriters: | RBC Capital Markets, LLC and UBS Financial Services Inc.
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| Fees: | 1.5%
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| Cusip: | 78013Q467
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