Published on 9/12/2018 in the Prospect News Structured Products Daily.
New Issue: RBC prices $1.33 million contingent coupon barrier autocalls tied to index, ETF
By Wendy Van Sickle
Columbus, Ohio, Sept. 12 – Royal Bank of Canada priced $1.33 million of autocallable contingent coupon barrier notes due Sept. 3, 2020 linked to the Nasdaq-100 index and the SPDR S&P Biotech ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 9.55% if each ETF of index closes at or above the 70% coupon barrier level on the observation date for that quarter.
The notes will be called at par plus the coupon if each ETF or index closes at or above its initial price on any quarterly observation date after one year.
The payout at maturity will be par plus the coupon unless any asset finishes below the 70% trigger level, in which case investors will be fully exposed to any losses of the worst performing ETF or index.
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: | Nasdaq-100 index and SPDR S&P Biotech ETF
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| Amount: | $1,327,000
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| Maturity: | Sept. 3, 2020
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| Coupon: | 9.55%, payable quarterly if each ETF or index closes at or above coupon barrier level on observation date for that quarter
|
| Price: | Par
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| Payout at maturity: | Par plus the coupon unless any ETF or index finishes below trigger level, in which case 1% loss for each 1% decline of worse performing ETF or index
|
| Call: | At par plus coupon if each ETF or index closes at or above initial price on any quarterly observation date after one year
|
| Initial levels: | $99.93 for ETF, 7,642.67 for index
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| Trigger levels: | $69.95 for ETF, 5,349.869 for index, 70% of initial levels
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| Pricing date: | Aug. 30
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| Settlement date: | Sept. 5
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| Agents: | RBC Capital Markets, LLC
|
| Fees: | 0.75%
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| Cusip: | 78013XB23
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