By Susanna Moon
Chicago, Oct. 24 – Royal Bank of Canada priced $24 million of autocallable contingent coupon barrier notes due Oct. 1, 2020 linked to the lesser performing of the common stocks of SPDR S&P Biotech ETF, SPDR S&P Retail ETF and Technology Select Sector SPDR Fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes pay a contingent quarterly coupon at an annual rate of 13.44% if each underlying fund closes at or above its 75% coupon barrier on the observation date for that quarter.
The notes will be called at par if each fund closes at or above its initial level on any quarterly observation date.
The payout at maturity will be par unless any fund finishes below its 75% trigger level, in which case investors will be fully exposed to any losses of the worst performing fund.
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: | SPDR S&P Biotech ETF, SPDR S&P Retail ETF and Technology Select Sector SPDR Fund
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| Amount: | $24 million
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| Maturity: | Oct. 1, 2020
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| Coupon: | 13.44% annualized, payable quarterly if each fund closes at or above 75% coupon barrier on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless any fund finishes below 75% trigger, in which case 1% loss per 1% decline of worst performing stock
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| Call: | At par if each fund closes at or above initial level on any quarterly observation date
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| Initial levels: | $95.99 for biotech fund, $51.26 for retail fund and $75.05 for tech fund
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| Barrier levels: | $71.99 for biotech fund, $38.45 for retail fund and $56.29 for tech fund, 75% of initial levels
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| Pricing date: | Sept. 27
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| Settlement date: | Oct. 2
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 1.75%
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| Cusip: | 78013XK23
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