By Susanna Moon
Chicago, June 23 – Royal Bank of Canada priced $1.38 million of trigger phoenix autocallable optimization securities due Dec. 23, 2016 linked to Charles Schwab Corp. shares, 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 the stock closes at or above its barrier level – 80% of the initial price – on the observation date for that quarter.
The notes will be called at par if the stock closes at or above its initial price on any quarterly observation date.
The payout at maturity will be par plus the contingent coupon unless the stock finishes below the 80% trigger level, in which case investors will be fully exposed to any losses.
UBS Financial Services Inc. and RBC Capital Markets, LLC are the agents.
| Issuer: | Royal Bank of Canada
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| Issue: | Trigger phoenix autocallable optimization securities
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| Underlying stock: | Charles Schwab Corp. (Symbol: SCHW)
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| Amount: | $1,375,000
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| Maturity: | Dec. 23, 2016
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| Coupon: | 9%, payable quarterly if stock closes at or above barrier price on observation date for that quarter
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| Price: | Par of $10
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| Payout at maturity: | Par plus contingent coupon if Schwab shares finish at or above trigger price; otherwise, full exposure to any losses
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| Call: | At par plus contingent coupon if Schwab shares close at or above initial price on a quarterly observation date
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| Initial level: | $32.67
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| Barrier level: | $26.14, 80% of initial price
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| Pricing date: | June 19
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| Settlement date: | June 24
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| Agents: | UBS Financial Services Inc. and RBC Capital Markets, LLC
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| Fees: | 1.5%
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| Cusip: | 78013D326
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