By Angela McDaniels
Tacoma, Wash., Feb. 13 – Royal Bank of Canada priced $865,000 of autocallable contingent coupon barrier notes due Feb. 13, 2020 linked to the SPDR S&P Biotech exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 8% a year if the ETF closes at or above its trigger price, 65% of its initial price, on the observation date for that quarter.
Beginning Feb. 12, 2018, the notes will be called at par if the ETF closes at or above its initial share price on any quarterly observation date.
The payout at maturity will be par unless the ETF finishes below its trigger price, in which case investors will be exposed to the ETF’s decline from its initial share price.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
|
| Issue: | Autocallable contingent coupon barrier notes
|
| Underlying ETF: | SPDR S&P Biotech ETF
|
| Amount: | $865,000
|
| Maturity: | Feb. 13, 2020
|
| Coupon: | 8%, payable quarterly if ETF closes at or above trigger price on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless ETF finishes below trigger price, in which case full exposure to decline of ETF from initial share price
|
| Call: | Beginning Feb. 12, 2018, at par if ETF closes at or above initial share price on any quarterly observation date
|
| Initial share price: | $66.75
|
| Trigger price: | $43.39, or 65% of initial share price
|
| Pricing date: | Feb. 10
|
| Settlement date: | Feb. 15
|
| Underwriter: | RBC Capital Markets, LLC
|
| Fees: | 2.25%
|
| Cusip: | 78012KZP5
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
