RBC plans autocallable contingent coupon barrier notes on biotech ETF

By Wendy Van Sickle

Columbus, Ohio, Feb. 8 – Royal Bank of Canada plans to price 0% autocallable contingent coupon barrier notes due Feb. 13, 2020 linked to the SPDR S&P Biotech exchange-traded fund, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a quarterly coupon at an annual rate of 8% to 9% if the fund closes above its trigger level, 65% of its initial level, on the review date for that quarter.

The notes will be called at par plus the coupon if the fund closes above its initial price on a review date.

The payout at maturity will be par plus the final coupon unless the fund closes below the 65% trigger level, in which case investors will be fully exposed to the fund’s decline from its initial level.

RBC Capital Markets, LLC is the underwriter.

The notes are expected to price Feb. 10.

The Cusip number is 78012KZP5.

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