Published on 10/22/2019 in the Prospect News Structured Products Daily.
New Issue: RBC sells $500,000 contingent coupon barrier autocalls on three bank stocks
By Wendy Van Sickle
Columbus, Ohio, Oct. 22 – Royal Bank of Canada priced $500,000 of autocallable contingent coupon barrier notes due Oct. 21, 2022 linked to the least performing of the common stocks of Bank of America Corp., U.S. Bancorp and JPMorgan Chase & Co., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly coupon at an annual rate of 8% if all the stocks close at or above their coupon barriers, 65% of their initial prices, on the applicable quarterly observation date.
The notes will be called at par plus the coupon if each stock closes at or above its initial price on any quarterly observation date starting April 20, 2020.
The payout at maturity will be par plus the final coupon unless any stock finishes below its 65% 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: | Autocallable contingent coupon barrier notes
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| Underlying stocks: | Bank of America Corp., U.S. Bancorp and JPMorgan Chase & Co.
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| Amount: | $500,000
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| Maturity: | Oct. 21, 2022
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| Coupon: | 8%, payable quarterly if 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
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| Call: | Starting April 20, 2020, automatically at par if each stock closes at or above initial price on any quarterly observation date
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| Initial prices: | $30.35 for BofA, $55.07 of U.S. Bancorp, $120.56 of JPMorgan
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| Coupon barriers: | $19.73 for BofA, $35.80 of U.S. Bancorp, $78.36 of JPMorgan, 65% of initial prices
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| Trigger prices: | $19.73 for BofA, $35.80 of U.S. Bancorp, $78.36 of JPMorgan, 65% of initial prices
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| Pricing date: | Oct. 18
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| Settlement date: | Oct. 23
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 2.25%
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| Cusip: | 78015KGX6
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