Published on 4/22/2019 in the Prospect News Structured Products Daily.
New Issue: RBC sells $2 million contingent coupon barrier notes on bank stocks
By Marisa Wong
Morgantown, W.Va., April 22 – Royal Bank of Canada priced $2 million of contingent coupon barrier notes due April 1, 2022 linked to the least performing of the common stocks of Bank of America Corp., JPMorgan Chase & Co. and U.S. Bancorp, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly coupon at an annual rate of 7.9% if each stock closes at or above its coupon barrier, 70% of the initial price, on the applicable quarterly observation date.
The payout at maturity will be par plus the final coupon unless any stock finishes below its 70% trigger price, in which case investors will lose 1% for each 1% that the least-performing stock’s final price is less than its initial price.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
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| Issue: | Contingent coupon barrier notes
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| Underlying stocks: | Bank of America Corp. (Symbol: BAC), JPMorgan Chase & Co. (Symbol: JPM) and U.S. Bancorp (Symbol: USB)
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| Amount: | $2 million
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| Maturity: | April 1, 2022
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| Coupon: | 7.9%, payable each quarter that each stock closes at or above 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 trigger price, in which case par plus return of the least-performing stock with full exposure to losses
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| Initial prices: | $27.59 for BofA, $101.23 for JPMorgan, $48.19 for U.S. Bancorp
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| Coupon barriers: | $19.31 for BofA, $70.86 for JPMorgan, $33.73 for U.S. Bancorp; 70% of initial prices
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| Trigger prices: | $19.31 for BofA, $70.86 for JPMorgan, $33.73 for U.S. Bancorp; 70% of initial prices
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| Pricing date: | March 29
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| Settlement date: | April 3
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 2.25%
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| Cusip: | 78013X4F2
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