New Issue: RBC prices $2.99 million trigger callable contingent yield notes on ETFs

By Sarah Lizee

Olympia, Wash., May 16 – Royal Bank of Canada priced $2.99 million of trigger callable contingent yield notes with daily coupon observation due Nov. 16, 2021 linked to the least performing of the SPDR S&P 500 ETF trust, the iShares Russell 2000 ETF and the iShares MSCI Emerging Markets ETF, according to a 424B2 filing with the Securities and Exchange Commission.

Each quarter, the notes pay a contingent coupon of 9.25% per year if each ETF’s closing level is at or above its coupon barrier, 65% of its initial level, on each day that quarter.

The notes are callable at par of $10 plus any coupon on each quarterly observation date other than the final one.

If the notes are not called and each ETF finishes at or above its trigger level, 60% of its initial level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the least-performing ETF’s final level is below its initial level.

UBS Financial Services Inc. and RBC Capital Markets, LLC are the underwriters.

Issuer:	Royal Bank of Canada
Issue:	Trigger callable contingent yield notes with daily coupon observation
Underlying ETF:	SPDR S&P 500 ETF trust, the iShares Russell 2000 ETF and the iShares MSCI Emerging Markets ETF
Amount:	$2,986,000
Maturity:	Nov. 16, 2021
Coupon:	9.25% per year, payable quarterly if each ETF closes at or above its coupon barrier on each day that quarter
Price:	Par of $10
Payout at maturity:	If each ETF finishes at or above trigger level, par; otherwise, 1% loss for every 1% that least-performing ETF’s final level is below initial level
Call option:	At par plus any coupon on each quarterly observation date other than final one
Initial levels:	$288.10 for S&P ETF, $156.62 for Russell ETF, $41.98 for EM ETF
Coupon barriers:	$187.27 for S&P ETF, $101.80 for Russell ETF, $27.29 for EM ETF; 65% of initial levels
Trigger levels:	$172.86 for S&P ETF, $93.97 for Russell ETF, $25.19 for EM ETF; 60% of initial levels
Pricing date:	May 13
Settlement date:	May 15
Agents:	UBS Financial Services Inc. and RBC Capital Markets, LLC
Fees:	1.25%
Cusip:	78014H805

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