Published on 10/12/2022 in the Prospect News Structured Products Daily.
New Issue: RBC prices $2.75 million 8.01% barrier income notes linked to two SPDR sector ETFs
By William Gullotti
Buffalo, N.Y., Oct. 12 – Royal Bank of Canada priced $2.75 million of 8.01% barrier income notes due March 11, 2025 linked to the lesser performing of the Financial Select Sector SPDR Fund and the Industrial Select Sector SPDR Fund, according to a 424B2 filing with the Securities and Exchange Commission.
Coupon will be payable monthly.
Investors will receive par if the lesser-performing ETF declines by 40% or less. Otherwise, investors will lose 1% for every 1% that the lesser-performing ETF declines from initial level.
RBC Capital Markets, LLC is the agent.
Issuer: | Royal Bank of Canada
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Issue: | Barrier income notes
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Underlying funds: | Industrial Select Sector SPDR Fund, Financial Select Sector SPDR Fund
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Amount: | $2,751,000
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Maturity: | March 11, 2025
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Coupon: | 8.01% per year, payable monthly
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Price: | Par
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Payout at maturity: | Par if each ETF finishes at or above barrier level; otherwise, full exposure to losses of worst performer
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Initial levels: | $86.82 for Industrial, $31.64 for Financial
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Barrier levels: | $52.09 for Industrial, $18.98 for Financial; 60% of initial levels
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Strike date: | Oct. 6
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Pricing date: | Oct. 7
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Settlement date: | Oct. 13
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Agent: | RBC Capital Markets, LLC
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Fees: | 0.48%
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Cusip: | 78016FYK4
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