Published on 7/27/2017 in the Prospect News Structured Products Daily.
New Issue: RBC prices $500,000 contingent coupon barrier autocallables tied to Apple, Microsoft
By Susanna Moon
Chicago, July 27 – Royal Bank of Canada priced $500,000 of autocallable contingent coupon barrier notes due July 25, 2019 linked to the worse performing of the common stocks of Apple Inc. and Microsoft Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 8.2% if each stock closes at or above its 70% coupon barrier on the observation date for that quarter.
The notes will be called at par if each stock closes above its initial level on any coupon payment date after six months.
The payout at maturity will be par unless either stock finishes below its 70% trigger level, in which case investors will receive a number shares of the worse performing stock equal to $1,000 divided by its initial share price.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
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| Issue: | Autocallable contingent coupon barrier notes
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| Underlying stock: | Apple Inc. (Symbol: AAPL), Microsoft Corp. (Symbol: MSFT)
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| Amount: | $500,000
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| Maturity: | July 25, 2019
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| Coupon: | 8.2%, payable quarterly if each stock closes at or above 70% coupon barrier on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless either stock finishes below 70% trigger level, in which case shares of the worse performing stock equal to $1,000 divided by initial level
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| Call: | At par if each stock closes above initial level on any coupon payment date after six months
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| Initial levels: | $150.27 for Apple, $73.79 for Microsoft
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| Trigger levels: | $120.22 for Apple, $51.65 for Microsoft; 70% of initial level
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| Pricing date: | July 21
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| Settlement date: | July 26
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| Agents: | RBC Capital Markets, LLC
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| Fees: | 1.75%
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| Cusip: | 78012K2W6
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