By Susanna Moon
Chicago, Jan. 4 – Royal Bank of Canada priced $1.67 million of autocallable contingent coupon barrier notes due Jan. 4, 2021 linked to the lesser performing of the common stocks of SPDR S&P Biotech exchange-traded fund and SPDR S&P 500 ETF Trust, according to a 424B2 filing with the Securities and Exchange Commission.
The notes pay a contingent quarterly coupon at an annual rate of 8.65% if each fund closes at or above its 70% coupon barrier on the observation date for that quarter.
The notes will be called at par if each fund closes at or above its initial level on any quarterly observation date beginning July 3, 2019.
The payout at maturity will be par unless either fund finishes below its 70% trigger level, in which case investors will be fully exposed to any losses of the worse performing fund.
RBC Capital Markets, LLC is the underwriter.
Issuer: | Royal Bank of Canada
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Issue: | Issuer callable contingent coupon barrier notes
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Underlying funds: | SPDR S&P Biotech ETF and SPDR S&P 500 ETF Trust
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Amount: | $1,665,000
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Maturity: | Jan. 4, 2021
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Coupon: | 8.65% annualized, payable quarterly if each fund closes at or above 70% coupon barrier on observation date for that quarter
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Price: | Par
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Payout at maturity: | Par unless either fund finishes below 70% trigger, in which case 1% loss per 1% decline of worse performing fund
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Call option: | At par on any quarterly observation date beginning July 3, 2019
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Initial levels: | $84.87 for biotech fund, $266.86 for S&P 500 fund
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Trigger levels: | $59.41 for biotech fund, $186.80 for S&P 500 fund; 70% of initial levels
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Pricing date: | Dec. 29
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Settlement date: | Jan. 4
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Underwriter: | RBC Capital Markets, LLC
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Fees: | 0.75%
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Cusip: | 78013XCT3
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