Published on 8/8/2016 in the Prospect News Structured Products Daily.
New Issue: RBC prices $1.82 million contingent coupon barrier autocallables linked to CVS, biotech ETF
By Angela McDaniels
Tacoma, Wash., Aug. 8 – Royal Bank of Canada priced $1.82 million of autocallable contingent coupon barrier notes due Feb. 9, 2017 linked to the lesser performing of the common stock of CVS Health Corp. and the SPDR S&P Biotech exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon at an annual rate of 12.96% if each underlier closes at or above its trigger price, 80% of its initial price, on the observation date for that quarter.
The notes will be called at par if each underlier closes at or above its initial price on any quarterly observation date.
The payout at maturity will be par unless either underlier finishes below its trigger price, in which case investors will receive a number of shares of the lesser-performing underlier equal to $1,000 divided by the initial share price of the lesser-performing underlier or, at the issuer’s option, an amount in cash equal to the value of those shares.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
|
| Issue: | Autocallable contingent coupon barrier notes
|
| Underliers: | CVS Health Corp., SPDR S&P Biotech ETF
|
| Amount: | $1,815,000
|
| Maturity: | Feb. 9, 2017
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| Coupon: | 12.96%, payable quarterly if each underlier closes above trigger price on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless either underlier finishes below trigger price, in which case number of shares of lesser-performing underlier equal to $1,000 divided by initial share price of lesser-performing underlier or, at issuer’s option, amount in cash equal to value of those shares
|
| Call: | At par if each underlier closes at or above initial level on any quarterly observation date
|
| Initial prices: | $97.37 for CVS and $64.21 for biotech ETF
|
| Trigger prices: | $77.90 for CVS and $51.37 for biotech ETF; 80% of initial prices
|
| Pricing date: | Aug. 5
|
| Settlement date: | Aug. 10
|
| Underwriter: | RBC Capital Markets, LLC
|
| Fees: | 1.75%
|
| Cusip: | 78013GBG9
|
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