By William Gullotti
Buffalo, N.Y., Aug. 24 – Royal Bank of Canada priced $1.63 million of autocallable contingent coupon barrier notes due Aug. 20, 2026 linked to the performance of the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes pay a contingent monthly coupon at the rate of 7.5% per year if the index closes at or above its coupon barrier level, 70% of its initial level, on the relevant observation date.
The notes will be called at par plus coupon if the index closes at or above its initial level on any monthly observation date after one year.
If the notes are not called and the index finishes at or above its coupon barrier, the payout at maturity will be par plus the final coupon.
If the index finishes below its coupon barrier but at or above the 60% trigger level, the payout at maturity will be par. Otherwise, investors will be fully exposed to the index’s decline 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 index: | S&P 500 index
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| Amount: | $1,625,000
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| Maturity: | Aug. 20, 2026
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| Coupon: | 7.5%, payable monthly if the index closes at or above coupon barrier level on the relevant observation date
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| Price: | Par
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| Payout at maturity: | If the index finishes at or above coupon barrier, par plus final coupon; if the index finishes below coupon barrier but at or above trigger level, par; otherwise, investors will be fully exposed to decline
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| Call: | At par plus coupon if the index closes at or above initial level on any monthly observation date after one year
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| Initial level: | 4,437.86
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| Coupon barrier level: | 3,106.5; 70% of initial levels
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| Trigger level: | 2,662.72; 60% of initial levels
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| Pricing date: | Aug. 15
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| Settlement date: | Aug. 18
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 0.75%
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| Cusip: | 78016NUP0
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