Published on 1/10/2020 in the Prospect News Structured Products Daily.
New Issue: RBC sells $10 million trigger callable contingent yield notes on iShares Russell, QQQ
By Wendy Van Sickle
Columbus, Ohio, Jan. 10 – Royal Bank of Canada priced $10 million of trigger callable contingent yield notes due Jan. 12, 2023 linked to the least performing of the iShares Russell 2000 ETF and the Invesco QQQ trust, series 1, according to a 424B2 filing with the Securities and Exchange Commission.
The notes pay a contingent quarterly coupon if each ETF closes at or above its coupon barrier, 70% of its initial level, on the observation date that period. The contingent coupon rate is 6.7% per year.
The notes are callable on any quarterly coupon observation date at par plus any coupon.
If the notes are not called and each ETF finishes at or above its downside threshold, 70% of its initial level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the least-performing ETF’s final level is below its initial level.
RBC Capital Markets, LLC and UBS Financial Services Inc. are the agents.
| Issuer: | Royal Bank of Canada
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| Issue: | Trigger callable contingent yield notes
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| Underlying ETFs: | iShares Russell 2000 ETF and Invesco QQQ trust, series 1
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| Amount: | $10 million
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| Maturity: | Jan. 12, 2023
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| Coupon: | 6.7% per year, payable quarterly if each ETF closes at or above its coupon barrier on observation date that period
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| Price: | Par
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| Payout at maturity: | If each ETF finishes at or above downside threshold, par; otherwise, 1% loss for every 1% that least-performing ETF’s final level is below initial level
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| Call option: | At par plus any coupon, quarterly
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| Initial levels: | $165.31 for Russell, $217.15 for QQQ
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| Coupon barriers: | $115.72 for Russell, $152.01 for QQQ; 70% of initial levels
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| Downside thresholds: | $115.72 for Russell, $152.01 for QQQ; 70% of initial levels
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| Pricing date: | Jan. 9
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| Settlement date: | Jan. 14
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| Agents: | RBC Capital Markets, LLC and UBS Financial Services Inc.
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| Fees: | 2%
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| Cusip: | 78014K287
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