By Sarah Lizee
Olympia, Wash., Aug. 28 – Royal Bank of Canada priced $4.25 million of autocallable contingent coupon barrier notes due Aug. 26, 2022 linked to the lesser performing of the SPDR S&P Biotech exchange-traded fund and the VanEck Vectors Semiconductor ETF, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon at an annual rate of 9% if each ETF closes at or above its trigger level, 60% of its initial share price, on the observation date for that quarter.
Starting Feb. 24, 2020, notes will be called at par if each ETF closes at or above its initial share price on any quarterly observation date.
The payout at maturity will be par unless any ETF finishes below its trigger level, in which case investors will be exposed to the decline of the least-performing ETF from its initial share price.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
|
| Issue: | Autocallable contingent coupon barrier notes
|
| Underlying ETFs: | SPDR S&P Biotech ETF and VanEck Vectors Semiconductor ETF
|
| Amount: | $4,248,000
|
| Maturity: | Aug. 26, 2022
|
| Coupon: | 9% per year, payable quarterly if each ETF closes at or above trigger level on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless any ETF finishes below trigger level, in which case full exposure to decline of least-performing ETF from initial share price
|
| Call: | Starting Feb. 24, 2020, at par if each ETF closes at or above initial share price on any quarterly observation date
|
| Initial share prices: | $109.70 for biotech ETF and $79.44 for technology fund
|
| Trigger levels: | $65.82 for biotech ETF and $47.66 for technology fund; 60% of initial share prices
|
| Pricing date: | Aug. 23
|
| Settlement date: | Aug. 28
|
| Underwriter: | RBC Capital Markets, LLC
|
| Fees: | 2.75%
|
| Cusip: | 78015KAJ3
|
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