Published on 2/5/2024 in the Prospect News Structured Products Daily.
New Issue: RBC prices $1.93 million autocallable contingent coupon barrier notes on three stocks
By Wendy Van Sickle
Columbus, Ohio, Feb. 5 – Royal Bank of Canada priced $1.93 million of autocallable contingent coupon barrier notes with memory coupon due Jan. 29, 2026 linked to the least performing of the stocks of Alphabet Inc., lululemon athletica inc. and Toll Brothers, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon at the rate of 19.2% per year if the each stock closes at or above its coupon barrier level, 70% of its initial price, on the observation date for that quarter. Previously unpaid coupons will also be paid.
The notes will be called at par if each stock closes at or above its initial level on any quarterly observation date after six months.
If the notes are not called, the payout at maturity will be par unless any stock finishes below its 70% trigger price, in which case investors will be fully exposed to the decline.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
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| Issue: | Autocallable contingent coupon barrier notes with memory coupon
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| Underlying stocks: | Alphabet Inc., lululemon athletica inc. and Toll Brothers, Inc.
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| Amount: | $1,925,000
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| Maturity: | Jan. 29, 2026
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| Coupon: | 19.2% annual rate, payable quarterly if each stock closes at or above coupon barrier level on observation date for that quarter; previously unpaid coupons will also be paid
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| Price: | Par
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| Payout at maturity: | Par unless any stock finishes below trigger price, in which case full exposure to decline
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| Call: | At par if each stock closes at or above initial share price on any quarterly observation date after six months
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| Initial share price: | $148.70 for Alphabet, $474.84 for lululemon, $95.98 for Toll Brothers
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| Coupon barrier levels: | $104.09 for Alphabet, $332.39 for lululemon, $67.19 for Toll Brothers; 70% of initial share prices
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| Trigger levels: | $104.09 for Alphabet, $332.39 for lululemon, $67.19 for Toll Brothers; 70% of initial share prices
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| Pricing date: | Jan. 24
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| Settlement date: | Jan. 29
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| Underwriter: | RBC Capital Markets, LLC
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| Fees: | 1.5%
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| Cusip: | 78017FCZ4
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