By Wendy Van Sickle
Columbus, Ohio, April 24 – Royal Bank of Canada priced $2.52 million of autocallable contingent coupon barrier notes due April 25, 2019 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 8.65% if the fund closes at or above the 70% trigger 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 beginning Oct. 23, 2017.
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 fund: | SPDR S&P Biotech exchange-traded fund
|
| Amount: | $2,523,000
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| Maturity: | April 25, 2019
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| Coupon: | 8.65%, payable quarterly if fund closes at or above trigger level on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless fund finishes below trigger level, in which case 1% loss for each 1% decline
|
| Call: | At par if fund closes at or above initial price on any quarterly observation date beginning Oct. 23, 2017
|
| Initial level: | $67.98
|
| Trigger level: | $47.59, 70% of initial level
|
| Pricing date: | April 21
|
| Settlement date: | April 26
|
| Agents: | RBC Capital Markets, LLC
|
| Fees: | 1.75%
|
| Cusip: | 78012KK97
|
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