By Wendy Van Sickle
Columbus, Ohio, Oct. 18 – Royal Bank of Canada priced $3.03 million of autocallable contingent coupon barrier notes due Oct. 18, 2018 linked to the SPDR S&P Biotech exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 11.2% if the fund closes at or above the 70% coupon barrier level on the observation date for that quarter.
The notes will be called at par if the fund closes at or above its initial price on any quarterly observation date.
The payout at maturity will be par unless the fund finishes below the 70% trigger level, in which case investors will be fully exposed to any losses.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
|
| Issue: | Autocallable contingent coupon barrier notes
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| Underlying ETF: | SPDR S&P Biotech exchange-traded fund
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| Amount: | $3,027,000
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| Maturity: | Oct. 18, 2018
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| Coupon: | 11.2%, payable quarterly if fund closes at or above coupon barrier on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless fund finishes below trigger level, in which case full exposure to losses
|
| Call: | At par if fund closes at or above initial price on any quarterly observation date Initial price: | $59.56
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| Barrier/trigger level: | $41.69, 70% of initial price
|
| Pricing date: | Oct. 14
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| Settlement date: | Oct. 19
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| Underwriter: | RBC Capital Markets, LLC
|
| Fees: | 2.25%
|
| Cusip: | 78012KTY3
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