Published on 8/7/2019 in the Prospect News Structured Products Daily.
New Issue: RBC prices $7.36 million autocallable contingent coupon barrier notes on three stocks
By Kiku Steinfeld
Chicago, Aug. 7 – Royal Bank of Canada priced $7.36 million of autocallable contingent coupon barrier notes due July 29, 2021 linked to the worst performing of the stocks of Archer-Daniels-Midland Co., Cardinal Health, Inc. and Lowe’s Cos., Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly coupon at an annual rate of 11.75% if each stock closes at or above its coupon barrier level, 60% of its initial level, on the observation date for that quarter.
The notes will be called at par plus the coupon if each stock closes at or above its initial price on any quarterly observation date, starting Jan. 27, 2020.
The payout at maturity will be par plus the final coupon unless any 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
|
| Issue: | Autocallable contingent coupon barrier notes
|
| Underlying stocks: | Archer-Daniels-Midland Co., Cardinal Health, Inc. and Lowe’s Cos., Inc.
|
| Amount: | $7,360,000
|
| Maturity: | July 29, 2021
|
| Coupon: | 11.75%, payable quarterly if each stock closes at or above coupon barrier on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless any stock finishes below trigger price, in which case par plus return of the least-performing stock
|
| Call: | Starting Jan. 27, 2020, automatically at par if each stock closes at or above initial price on any observation date
|
| Initial prices: | $40.68 for Archer-Daniels-Midland, $44.91 for Cardinal, $102.05 for Lowe’s
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| Coupon barriers/triggers: | $24.41 for Archer-Daniels-Midland, $26.95 for Cardinal, $61.23 for Lowe’s; 60% of initial prices
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| Pricing date: | July 25
|
| Settlement date: | July 30
|
| Agent: | RBC Capital Markets, LLC
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| Fees: | 3%
|
| Cusip: | 78013GHW8
|
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