Published on 9/6/2017 in the Prospect News Structured Products Daily.
New Issue: RBC sells $700,000 autocallable contingent coupon barrier notes on Delta, Gold Miners
By Wendy Van Sickle
Columbus, Ohio, Aug. 31 – Royal Bank of Canada priced $700,000 of autocallable contingent coupon barrier notes due March 5, 2018 linked to the lesser performing of the VanEck Vectors Gold Miners exchange-traded fund and the common stock of Delta Air Lines, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly coupon at an annual rate of 12% if each asset closes above its coupon barrier level, 80% of its initial price, on the observation date for that quarter.
The notes will be called at par the coupon if each asset closes above its initial price on any quarterly observation date.
The payout at maturity will be par plus the final coupon unless either asset finishes below the 80% trigger price, 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 underwriter.
| Issuer: | Royal Bank of Canada
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| Issue: | Autocallable contingent coupon barrier notes
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| Underlying assets: | VanEck Vectors Gold Miners exchange-traded fund and the common stock of Delta Air Lines, Inc.
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| Amount: | $700,000
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| Maturity: | March 5, 2018
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| Coupon: | 12%, 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 either asset finishes below trigger price, in which case investors will lose 1% for each 1% that the lesser-performing asset’s final level is less than its initial level
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| Call: | At par if each asset closes at or above initial share price on any quarterly observation date
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| Initial fund prices: | $46.62 for Delta, $24.42 for ETF
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| Coupon barrier/trigger prices: | $37.30 for Delta, $19.54 for ETF; 80% of initial stock prices
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| Pricing date: | Aug. 29
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| Settlement date: | Aug. 31
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| Underwriter: | RBC Capital Markets, LLC
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| Fees: | 2%
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| Cusip: | 78012K5W3
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