By Kiku Steinfeld
Chicago, Nov. 8 – Royal Bank of Canada priced $683,000 of autocallable contingent coupon barrier notes due Nov. 3, 2022 linked to the lesser performing of the common stocks of Cigna Corp. and UnitedHealth Group Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 8.5% per year if each stock closes at or above its coupon barrier, 60% of its initial share price, on the observation date for that quarter.
The notes will be automatically called at par plus the coupon if each stock closes at or above its initial share price on any quarterly observation date after six months.
The payout at maturity will be par plus the coupon unless the lesser-performing stock finishes below its trigger price, in which case investors will lose 1% for every 1% that the lesser-performing stock declines from its initial share price.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
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| Issue: | Autocallable contingent coupon barrier notes
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| Underlying stocks: | Cigna Corp. and UnitedHealth Group Inc.
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| Amount: | $683,000
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| Maturity: | Nov. 3, 2022
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| Coupon: | 8.5% per year, payable quarterly if each stock closes at or above trigger price on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par plus coupon unless lesser-performing stock finishes below trigger price, in which case 1% loss for every 1% that lesser-performing declines from initial share price
|
| Call: | Automatically at par plus coupon if each stock closes at or above initial share price on any quarterly observation date after six months
|
| Initial share prices: | $177.98 for Cigna and $252.29 for UnitedHealth
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| Coupon barriers: | $106.79 for Cigna and $151.37 for UnitedHealth, or 60% of initial share prices
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| Trigger prices: | $106.79 for Cigna and $151.37 for UnitedHealth, or 60% of initial share prices
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| Pricing date: | Oct. 29
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| Settlement date: | Oct. 31
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| Agent: | RBC Capital Markets, LLC
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| Fees: | 2.25%
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| Cusip: | 78015KHK3
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