Published on 2/11/2020 in the Prospect News Structured Products Daily.
New Issue: RBC prices $4.52 million contingent coupon barrier autocallables linked to ETFs
By Sarah Lizee
Olympia, Wash., Feb. 11 – Royal Bank of Canada priced $4.52 million of autocallable contingent coupon barrier notes due Feb. 2, 2022 linked to the least performing of the SPDR S&P Regional Banking ETF and the SPDR S&P Biotech 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 8.15% if each asset closes at or above its coupon barrier level, 65% of its initial level, on the observation date for that quarter.
The notes will be called at par plus the coupon if each asset closes above its initial level on any observation date.
The payout at maturity will be par plus any coupon due unless either asset finishes below its 65% trigger level, in which case investors will lose 1% for each 1% decline of the lesser-performing asset from its initial level.
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 assets: | SPDR S&P Regional Banking ETF and SPDR S&P Biotech ETF
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Amount: | $4,519,000
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Maturity: | Feb. 2, 2022
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Coupon: | 8.15%, payable quarterly if each asset closes at or above coupon barrier level on observation date for that quarter
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Price: | Par
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Payout at maturity: | Par plus any coupon unless either asset finishes below trigger level, in which case 1% loss for each 1% decline of lesser-performing asset from initial level
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Call: | Automatically at par on any observation date if each asset finishes above its initial level
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Initial levels: | $55.43 for banking ETF, $91.78 for biotech ETF
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Coupon barrier levels: | $36.03 for banking ETF, $59.66 for biotech ETF, 65% of initial levels
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Trigger levels: | $36.03 for banking ETF, $59.66 for biotech ETF, 65% of initial levels
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Pricing date: | Jan. 28
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Settlement date: | Jan. 31
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Agent: | RBC Capital Markets, LLC
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Fees: | 2.25%
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Cusip: | 78015KKK9
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