Published on 8/10/2017 in the Prospect News Structured Products Daily.
New Issue: RBC sells $1.29 million contingent coupon barrier autocallables on S&P, biotech ETF
By Marisa Wong
Morgantown, W.Va., Aug. 10 – Royal Bank of Canada priced $1.29 million of autocallable contingent coupon barrier notes due Aug. 6, 2020 linked to the lesser performing of the SPDR S&P Biotech exchange-traded fund and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly coupon at an annual rate of 8% if each asset closes at or above its trigger level, 61% of its initial level, on the review date for that quarter.
After one year, the notes will be called at par plus the coupon if each asset closes at or above its initial level on any quarterly review date.
The payout at maturity will be par plus the final coupon unless any asset finishes below the 61% trigger level, in which case investors will lose 1% for each 1% that the lesser performing asset’s final level is less than its initial level.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
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| Issue: | Autocallable contingent coupon barrier notes
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| Underlying assets: | SPDR S&P Biotech ET and S&P 500 index
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| Amount: | $1.29 million
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| Maturity: | Aug. 6, 2020
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| Coupon: | 8%, payable quarterly if each asset closes at or above coupon barrier level on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless any asset finishes below trigger level, in which case 1% loss for each 1% decline of lesser performing asset from initial level
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| Call: | At par plus coupon if each asset closes at or above its initial level on a review date, starting Aug. 1, 2018
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| Initial levels: | $77.09 for ETF, 2,476.35 for index
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| Coupon barrier levels: | $47.02 for ETF, 1,510.57 for index; 61% of initial levels
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| Trigger levels: | $47.02 for ETF, 1,510.57 for index; 61% of initial levels
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| Pricing date: | Aug. 1
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| Settlement date: | Aug. 4
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 0.65%
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| Cusip: | 78012K3P0
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