Chicago, July 17 – Royal Bank of Canada priced $765,000 of autocallable contingent coupon barrier notes due July 15, 2026 linked to the lesser performing of the Energy Select Sector SPDR fund and the SPDR S&P Regional Banking ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly coupon at an annual rate of 14% if each fund closes at or above its coupon barrier level, 75% of its initial price, on the observation date for that period.
The notes will be called at par plus the coupon if each fund closes at or above its initial price on any quarterly observation date.
The payout at maturity will be par plus the coupon if both ETFs close above their 75% trigger price. Otherwise, investors will be fully exposed to the losses of the worse performer.
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 ETFs: | Energy Select Sector SPDR fund and the SPDR S&P Regional Banking ETF
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| Amount: | $765,000
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| Maturity: | July 15, 2026
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| Coupon: | 14% annual rate, payable quarterly if each fund closes at or above coupon barrier level on observation date for that period
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| Price: | Par
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| Payout at maturity: | Par plus coupon unless either fund finishes below trigger price, in which case investors will lose 1% for each 1% that the lesser-performing fund’s final level is less than its initial level
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| Call: | Automatically at par if each fund closes at or above its initial share price on any quarterly observation date
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| Initial fund prices: | $81.42 for Energy, $41.80 for Banking
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| Coupon barrier/trigger prices: | $61.07 for Energy, $31.35 for Banking; 75% of initial prices
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| Pricing date: | July 10
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| Settlement date: | July 17
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 2.25%
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| Cusip: | 78016NNM5
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