By Wendy Van Sickle
Columbus, Ohio, Feb. 25 – Royal Bank of Canada priced $2 million of trigger phoenix autocallable notes due March 1, 2017 linked to the lesser performing of the SPDR S&P Biotech exchange-traded fund and the Energy Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at an annual rate of 16% if each fund closes at or above its trigger level, 60% of its initial share price, on the observation date for that quarter.
The notes will be called at par if each fund closes at or above its initial share price on any quarterly call observation date.
If the notes are not called and each fund finishes at or above its trigger level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will be exposed to the decline of the lesser-performing fund.
RBC Capital Markets LLC is the agent.
| Issuer: | Royal Bank of Canada
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| Issue: | Trigger phoenix autocallable notes
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| Underlying funds: | SPDR S&P Biotech ETF and Energy Select Sector SPDR fund
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| Amount: | $1,994,000
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| Maturity: | March 1, 2017
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| Coupon: | 16% per year, payable quarterly if each fund closes at or above trigger price on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par plus contingent coupon if each fund finishes at or above trigger price; otherwise, exposure to decline of lesser-performing fund
|
| Call: | At par plus contingent coupon if each fund closes at or above initial share price on any quarterly observation date
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| Initial prices: | $48.76 for SPDR S&P Biotech, $56.87 for Energy Select Sector SPDR
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| Trigger levels: | $29.26 for SPDR S&P Biotech, $34.12 for Energy Select Sector SPDR; 60% of initial share price
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| Pricing date: | Feb. 24
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| Settlement date: | Feb. 29
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| Underwriters: | RBC Capital Markets, LLC
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| Fees: | 1.75%
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| Cusip: | 78012KLP0
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