Published on 7/25/2018 in the Prospect News Structured Products Daily.
New Issue: RBC prices $1.53 million autocallable contingent coupon barrier notes on Boeing, Caterpillar
By Wendy Van Sickle
Columbus, Ohio, July 25 – Royal Bank of Canada priced $1.53 million of autocallable contingent coupon barrier notes due July 16, 2021 linked to the worst performing of the common stocks of Boeing Co. and Caterpillar Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly coupon at an annual rate of 8.35% if each stock closes above its coupon barrier level, 60% of its initial level, on the observation date for that quarter.
The notes will be called at par the coupon if each stock closes above its initial price on any quarterly observation date, starting Jan. 14, 2019.
The payout at maturity will be par plus the final coupon unless either stock finishes below the 60% trigger level, in which case investors will lose 1% for each 1% that the worst-performing stock’s final level is less than 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 stocks: | Boeing Co. and Caterpillar Inc.
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| Amount: | $1,529,000
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| Maturity: | July 16, 2021
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| Coupon: | 8.35%, payable quarterly if each stock closes at or above coupon barrier on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless either stock finishes below trigger price, in which case par plus return of the least-performing stock
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| Call: | Starting Jan. 14, 2019, automatically at par if each stock closes above initial price on any observation date
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| Initial prices: | $350.79 for Boeing, $140.75 for Caterpillar
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| Coupon barriers/triggers: | $210.47 for Boeing, $84.45 for Caterpillar; 60% of initial prices
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| Pricing date: | July 13
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| Settlement date: | July 18
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 2.25%
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| Cusip: | 78013XPM4
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