By Wendy Van Sickle
Columbus, Ohio, Jan. 12 – Royal Bank of Canada priced $5.6 million of trigger phoenix autocallable notes due Jan. 11, 2019 linked to Apple Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 9% if Apple stock closes at or above the coupon barrier price, 74% of the initial price, on the observation date for that quarter.
If the shares close at or above the initial price on any quarterly observation date, the notes will be called at par of $1,000 plus the contingent coupon.
The payout at maturity will be par plus the contingent coupon unless Apple shares finish below the 74% trigger price, in which case investors will be fully exposed to the decline.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
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| Issue: | Trigger phoenix autocallable notes
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| Underlying stock: | Apple Inc. (Nasdaq: AAPL)
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| Amount: | $5.6 million
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| Maturity: | Jan. 11, 2019
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| Coupon: | 9%, payable quarterly if stock closes at or above coupon barrier price on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par plus contingent coupon if Apple shares finish at or above trigger price; otherwise, par plus stock return
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| Call: | Automatically at par plus contingent coupon if Apple shares close at or above initial price on a quarterly observation date
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| Initial share price: | $96.96
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| Trigger price: | $71.75, 74% of initial price
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| Pricing date: | Jan. 8
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| Settlement date: | Jan. 13
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| Underwriters: | RBC Capital Markets, LLC
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| Fees: | 2.25%
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| Cusip: | 78012KKR7
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