By Marisa Wong
Morgantown, W.Va., Oct. 19 – Royal Bank of Canada priced $2.61 million of contingent income autocallable securities due Oct. 24, 2016 linked to the common units representing limited partner interests of the Blackstone Group LP, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent coupon each quarter at an annualized rate of 14% if Blackstone units close at or above the downside threshold level, 75% of the initial unit price, on the determination date for that quarter.
The notes will be called at par of $10 plus the contingent coupon if Blackstone units close at or above the initial unit price on any of the first three determination dates.
If the final unit price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will lose 1% for every 1% that the final unit price is less than the initial unit price.
RBC Capital Markets, LLC is the agent. Morgan Stanley Wealth Management will handle distribution.
| Issuer: | Royal Bank of Canada
|
| Issue: | Contingent income autocallable securities
|
| Underlying units: | Blackstone Group LP (Symbol: BX)
|
| Amount: | $2,607,500
|
| Maturity: | Oct. 24, 2016
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| Coupon: | 14% per year, payable quarterly if units close at or above downside threshold level on determination date for that quarter
|
| Price: | Par of $10.00
|
| Payout at maturity: | Par plus contingent coupon if units finish at or above downside threshold level; otherwise, 1% loss for every 1% that final unit price is less than the initial unit price
|
| Call: | At par plus contingent payment if units close at or above initial unit price on any of first three determination dates
|
| Initial price: | $34.52
|
| Downside threshold: | $25.89, 75% of initial unit price
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| Pricing date: | Oct. 16
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| Settlement date: | Oct. 21
|
| Agent: | RBC Capital Markets, LLC
|
| Distribution: | Morgan Stanley Wealth Management
|
| Fees: | 1.75%
|
| Cusip: | 78013D847
|
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