Published on 9/26/2018 in the Prospect News Structured Products Daily.
New Issue: RBC prices $2.37 million contingent coupon barrier notes tied to index, ETFs
By Wendy Van Sickle
Columbus, Ohio, Sept. 26 – Royal Bank of Canada priced $2.37 million of contingent coupon barrier notes due Sept. 24, 2020 linked to the Euro Stoxx 50 index, the SPDR S&P Oil & Gas Exploration and Production ETF and the iShares MSCI Emerging Markets ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 10.6% if each ETF of index closes at or above the 70% coupon barrier level on the observation date for that quarter.
The payout at maturity will be par plus the coupon unless any asset finishes below the 70% trigger level, in which case investors will be fully exposed to any losses of the worst performing ETF or index.
RBC Capital Markets, LLC is the agent with JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC as placement agents.
| Issuer: | Royal Bank of Canada
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| Issue: | Contingent coupon barrier notes
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| Underlying assets: | Euro Stoxx 50 index, SPDR S&P Oil & Gas Exploration and Production ETF and iShares MSCI Emerging Markets ETF
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| Amount: | $2,369,000
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| Maturity: | Sept. 24, 2020
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| Coupon: | 10.6%, payable quarterly if each ETF or index closes at or above coupon barrier level on observation date for that quarter
|
| Price: | Par
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| Payout at maturity: | Par plus the coupon unless any ETF or index finishes below trigger level, in which case 1% loss for each 1% decline of worse performing ETF or index
|
| Initial levels: | $42.49 for oil & gas ETF, $43.23 for emerging markets ETF, 3,403.81 for index
|
| Trigger levels: | $29.74 for oil & gas ETF, $30.26 for emerging markets ETF, 2,401.57 for index, 70% of initial levels
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| Pricing date: | Sept. 21
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| Settlement date: | Sept. 26
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| Agents: | RBC Capital Markets, LLC with JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC as placement agents
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| Fees: | 1.5%
|
| Cusip: | 78013XH43
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