Published on 3/14/2024 in the Prospect News Structured Products Daily.
New Issue: RBC prices $632,000 contingent coupon barrier notes with memory on ETFs
By Kiku Steinfeld
Chicago, March 14 – Royal Bank of Canada priced $632,000 of contingent coupon barrier notes with memory coupon due Jan. 3, 2025 linked to the performance of the Energy Select Sector SPDR fund and 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 monthly coupon at an annual rate of 12.2% if each fund closes at or above its coupon barrier level, 70% of its initial level, on the observation date for that period. Previously unpaid coupons, if any, will be automatically included whenever a coupon is paid.
The payout at maturity will be par plus the final coupon if each fund finishes at or above its coupon barrier.
If the worst performer finishes below its coupon barrier but at or above the 60% trigger level, the payout will be par. Otherwise, investors will be fully exposed to the decline of the worst performer from its initial level.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
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| Issue: | Contingent coupon barrier notes with memory coupon
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| Underlying funds: | Energy Select Sector SPDR fund and SPDR S&P Oil & Gas Exploration & Production ETF
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| Amount: | $632,000
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| Maturity: | Jan. 3, 2025
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| Coupon: | 12.2%, payable monthly if each fund closes at or above coupon barrier level on observation date for that period; payments will automatically include any previously unpaid coupons
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| Price: | Par
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| Payout at maturity: | If each fund finishes at or above coupon barrier, par plus final coupon; if worst performer finishes below coupon barrier but at or above trigger level, par; otherwise, 1% loss for every 1% decline of worst performer from its initial level
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| Initial levels: | $80.65 for Energy, $128.07 for Oil & Gas
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| Coupon barriers: | $56.46 for Energy, $89.65 for Oil & Gas; 70% of initial levels
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| Trigger levels: | $48.39 for Energy, $76.84 for Oil & Gas; 60% of initial levels
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| Pricing date: | June 29, 2023
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| Settlement date: | July 5, 2023
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 0.3%
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| Cusip: | 78016NJV0
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