By Angela McDaniels
Tacoma, Wash., Feb. 13 – Royal Bank of Canada priced $1.85 million of autocallable contingent coupon barrier notes due Feb. 14, 2018 linked to the lesser performing of the SPDR S&P Regional Banking exchange-traded fund and the Energy Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon at the rate of 12.5% a year if each ETF closes at or above its trigger price, 80% of its initial price, on the observation date for that quarter.
The notes will be called at par if each ETF closes at or above its initial share price on any quarterly observation date.
The payout at maturity will be par unless either ETF finishes below its trigger price, in which case investors will be exposed to the lesser-performing ETF’s decline from its initial share price.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
|
| Issue: | Autocallable contingent coupon barrier notes
|
| Underlying ETFs: SPDR S&P Regional Banking ETF and Energy Select Sector SPDR fund
|
| Amount: | $1,845,000
|
| Maturity: | Feb. 14, 2018
|
| Coupon: | 12.5%, payable quarterly if ETFs close at or above trigger prices on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless either ETF finishes below trigger price, in which case full exposure to decline of lesser-performing ETF from initial share price
|
| Call: | At par if each ETF closes at or above initial share price on any quarterly observation date
|
| Initial share prices: | $55.91 for banking ETF and $72.73 for energy fund
|
| Trigger prices: | $44.73 for banking ETF and $58.18 for energy fund, or 80% of initial share prices
|
| Pricing date: | Feb. 19
|
| Settlement date: | Feb. 14
|
| Underwriter: | RBC Capital Markets, LLC
|
| Fees: | 1.25%
|
| Cusip: | 78013GCE3
|
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