Published on 12/7/2018 in the Prospect News Structured Products Daily.
New Issue: RBC prices $2.74 million 10.3% contingent coupon autocalls tied to three stocks
By Susanna Moon
Chicago, Dec. 7 – Royal Bank of Canada priced $2.74 million of autocallable contingent coupon barrier notes due Nov. 19, 2021 linked to the lesser performing of the common stocks of Amazon.com, Inc., Target Corp. and Walmart Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes pay a contingent quarterly coupon at an annual rate of 10.3% if each stock closes at or above its 55% coupon barrier on the observation date for that quarter.
The notes will be called at par if each stock closes at or above its initial level on any quarterly observation date.
The payout at maturity will be par unless any stock finishes below its 55% trigger level, in which case investors will be fully exposed to any losses of the worst performing stock.
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: | Amazon.com, Inc. (Symbol: AMZN), Target Corp. (Symbol: TGT) and Walmart Inc. (Symbol: WMT)
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| Amount: | $2,735,000
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| Maturity: | Nov. 19, 2021
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| Coupon: | 10.3% annualized, payable quarterly if each stock closes at or above 55% coupon barrier on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless any stock finishes below 55% trigger, in which case 1% loss per 1% decline of worst performing stock
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| Call: | At par if each stock closes at or above initial level on any quarterly observation date beginning May 16, 2019
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| Initial levels: | $1,593.41 for Amazon, $79.68 for Target and $97.69 for Walmart
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| Barrier levels: | $876.38 for Amazon, $43.82 for Target and $53.73 for Walmart, 55% of initial levels
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| Pricing date: | Nov. 16
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| Settlement date: | Nov. 21
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 2.25%
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| Cusip: | 78013XRU4
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