By Wendy Van Sickle
Columbus, Ohio, May 5 – Royal Bank of Canada priced $4.66 million issuer callable contingent coupon barrier notes due April 20, 2023 tied to the SPDR S&P Oil & Gas Exploration & Production ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly contingent coupon at an annual rate of 10% if the fund closes above its 60% coupon barrier on the observation date for that quarter.
The notes may be called at par plus any coupon due at the option of the issuer on any quarterly coupon payment date.
Investors will receive par plus the contingent coupon if the final level of the fund is above its 60% trigger level.
Otherwise, investors will be fully exposed to the losses of the underlier, payable either in shares or cash at the issuer’s option.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
|
| Issue: | Issuer callable contingent coupon barrier note
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| Underlying fund: | SPDR S&P Oil & Gas Exploration & Production ETF
|
| Amount: | $4,656,000
|
| Maturity: | April 20, 2023
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| Coupon: | 10% annual rate, paid quarterly if fund closes above coupon barrier on related observation date
|
| Price: | Par
|
| Payout at maturity: | Par plus contingent coupon unless fund closes below trigger level, in which case full exposure to losses, payable either in shares or cash at issuer’s option
|
| Call option: | At par plus any coupon due at the option of the issuer on any quarterly coupon payment date
|
| Initial level: | $77.51
|
| Coupon barrier level: | $46.51, 60% of initial levels
|
| Trigger level: | $46.51, 60% of initial levels
|
| Pricing date: | April 16
|
| Settlement date: | April 21
|
| Agent: | RBC Capital Markets, LLC
|
| Fees: | 1.75%
|
| Cusip: | 78013GM85
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