By Kiku Steinfeld
Chicago, March 5 – Royal Bank of Canada priced $930,000 phoenix autocallable notes with memory coupon due July 10, 2024 linked to the Energy Select Sector SPDR Fund, according to a 424B2 filing with the Securities and Exchange Commission.
If the ETF closes at or above the trigger level, 67.8% of the initial level, on any quarterly observation date, the notes will pay a contingent coupon at an annual rate of 10%. Previously unpaid contingent coupons, if any, will be paid whenever a contingent coupon is paid.
The notes will be called at par plus the coupon if the shares close at or above the initial share price on any quarterly observation date.
The payout at maturity will be par plus the final coupon and any previously unpaid coupons if the ETF finishes above at or above the trigger level. Otherwise, investors will be fully exposed to the decline of the ETF from its initial share price.
RBC Capital Markets, LLC is the agent. JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC are the placement agents.
| Issuer: | Royal Bank of Canada
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| Issue: | Phoenix autocallable notes with memory coupon
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| Underlying fund: | Energy Select Sector SPDR Fund
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| Amount: | $930,000
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| Maturity: | July 10, 2024
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| Coupon: | 10% per year, if ETF closes at or above trigger level on quarterly observation date; coupon payment events will include any previously unpaid coupons
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| Price: | Par
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| Payout at maturity: | If ETF finishes at or above trigger level, par plus final coupon and any previously unpaid coupons; otherwise, lose 1% for every 1% decline in share price from initial price
|
| Call: | At par plus coupon and any unpaid coupons if ETF closes at or above initial level on any quarterly observation date
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| Initial price: | $77.36
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| Trigger level: | $56.42; 67.8% of initial price
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| Pricing date: | June 23, 2023
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| Settlement date: | June 28, 2023
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| Agent: | RBC Capital Markets, LLC
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| Placement agents: | JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC
|
| Fees: | 1%
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| Cusip: | 78016NJU2
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