Published on 4/24/2023 in the Prospect News Structured Products Daily.
New Issue: RBC sells $290,000 phoenix autocallable notes with memory on banking ETF
Chicago, April 24 – Royal Bank of Canada sold $290,000 of phoenix autocallable notes with memory coupon due June 7, 2023 linked to SPDR S&P Regional Banking ETF, according to a 424B2 filing with the Securities and Exchange Commission.
If the ETF closes at or above the trigger level, 80% of the initial level, on a quarterly observation date, the notes will pay a contingent coupon at an annualized rate of 17.2%, plus any previously unpaid contingent interest payments.
The notes will be called at par plus coupon if the shares close at or above the initial level on any observation date other than the final date.
The payout at maturity will be par plus the final coupon unless the ETF finishes below the 80% trigger level, in which case investors will lose 1% for every 1% decline from the initial level.
RBC Capital Markets, LLC is the agent. JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC are acting as placement agents.
| Issuer: | Royal Bank of Canada
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| Issue: | Phoenix autocallable notes with memory coupon
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| Underlying ETF: | SPDR S&P Regional Banking ETF
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| Amount: | $290,000
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| Maturity: | June 7, 2023
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| Coupon: | 17.2% annualized, paid quarterly, plus any previously unpaid coupons if ETF closes at or above trigger level on quarterly observation date
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| Price: | Par
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| Payout at maturity: | Par plus all unpaid coupons if ETF finishes at or above trigger level; otherwise, lose 1% for every 1% decline from initial level
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| Call: | At par plus coupon if ETF closes at or above initial level on a quarterly observation date
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| Initial level: | $59.98
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| Trigger level: | $47.98; 80% of initial level
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| Pricing date: | May 20, 2022
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| Settlement date: | May 25, 2022
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| Agent: | RBC Capital Markets, LLC,
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| Placement agents: | JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC
|
| Fees: | 1%
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| Cusip: | 78016FKN3
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