Published on 8/16/2018 in the Prospect News Structured Products Daily.
New Issue: RBC prices $267,000 9.1% contingent coupon autocalls on BofA, Amazon
By Susanna Moon
Chicago, Aug. 16 – Royal Bank of Canada priced $267,000 of autocallable contingent coupon barrier notes due Aug. 13, 2021 linked to the lesser performing of the common stocks of Bank of America Corp. and Amazon.com, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes pay a contingent quarterly coupon at an annual rate of 9.1% if each stock closes at or above its 65% coupon barrier on the observation date for that quarter.
The notes will be called at par if each stock closes at or above its initial level on any quarterly observation date.
The payout at maturity will be par any either stock finishes below its 65% trigger level, in which case investors will be fully exposed to any losses of the worst performing stock.
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 assets: | Bank of America Corp. (Symbol: BAC) and Amazon.com, Inc. (Symbol: AMZN)
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| Amount: | $267,000
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| Maturity: | Aug. 13, 2021
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| Coupon: | 9.1% annualized, payable quarterly if each stock closes at or above 65% coupon barrier on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless any stock finishes below 65% trigger, in which case 1% loss per 1% decline of worst performing stock
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| Call: | At par if each stock closes at or above initial level on any quarterly observation date beginning Feb. 11, 2019
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| Initial levels: | $31.19 for BofA, $1,886.30 for Amazon
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| Barrier levels: | $20.27 for BofA, $1,226.10 for Amazon, 65% of initial levels
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| Pricing date: | Aug. 10
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| Settlement date: | Aug. 15
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 2.25%
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| Cusip: | 78013XRS9
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