Published on 9/19/2016 in the Prospect News Structured Products Daily.
New Issue: RBC prices $320,000 callable contingent coupon barrier notes linked to indexes
By Devika Patel
Knoxville, Tenn., Sept. 19 – Royal Bank of Canada priced $320,000 of callable contingent coupon barrier notes due Sept. 19, 2019 linked to the least performing of the S&P 500 index, the Russell 2000 index and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon at an annual rate of 7.32% if each index closes at or above its trigger level, 70% of its initial level, on the observation date for that quarter.
Beginning in September 2017, the notes are callable on any interest payment date.
The payout at maturity will be par unless any index finishes below its 70% trigger level, in which case investors will lose 1% for each 1% decline of the least-performing index from its initial level.
RBC Capital Markets, LLC is the underwriter.
Issuer: | Royal Bank of Canada
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Issue: | Callable contingent coupon barrier notes
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Indexes: | S&P 500, Russell 2000 and Nasdaq-100
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Amount: | $320,000
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Maturity: | Sept. 19, 2019
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Coupon: | 7.32%, payable quarterly if each index closes at or above trigger level on observation date for that quarter
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Price: | Par
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Payout at maturity: | Par unless any index finishes below trigger level, in which case 1% loss for each 1% decline of least-performing index from initial level
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Call: | At par on any interest payment date from September 2017 onward
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Initial levels: | 2,147.26 for S&P 500, 1,227.023 for Russell 2000 and 4,819.896 for Nasdaq-100
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Trigger levels: | 1,503.08 for S&P 500, 858.916 for Russell 2000 and 3,373.927 for Nasdaq-100; 70% of initial levels
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Pricing date: | Sept. 15
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Settlement date: | Sept. 20
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Agents: | RBC Capital Markets, LLC
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Fees: | 2.25%
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Cusip: | 78012KTB3
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