By Susanna Moon
Chicago, Oct. 8 - Royal Bank of Canada priced $19 million of contingent income autocallable securities due Oct. 9, 2014 linked to JPMorgan Chase & Co. shares, according to a 424B2 filing with the Securities and Exchange Commission.
If JPMorgan stock closes at or above the 80% barrier level on a quarterly determination date, the notes will pay a contingent payment of 1.825% for that quarter.
If the closing share price is greater than or equal to the initial share price on any of the first three quarterly determination dates, the notes will be redeemed at par of $10 plus the contingent payment.
If the notes are not called, the payout at maturity will be par plus the contingent payment unless the stock finishes below the barrier level, in which case the payout will be a number of JPMorgan shares equal to $10 divided by the initial share price or, at the issuer's option, the cash equivalent.
RBC Capital Markets, LLC is the agent with distribution through Morgan Stanley Smith Barney LLC.
| Issuer: | Royal Bank of Canada
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | JPMorgan Chase & Co. (Symbol: JPM)
|
| Amount: | $19 million
|
| Maturity: | Oct. 9, 2014
|
| Contingent payment: | 1.825% per quarter that JPMorgan stock closes at or above barrier level for that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | If stock finishes at or above barrier level, par plus contingent payment; otherwise, 0.1899 JPMorgan shares
|
| Call: | At par plus contingent payment if shares close at or above initial level on any of the first three quarterly determination dates
|
| Initial share price: | $52.67
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| Barrier level: | $42.14, 80% of initial share price
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| Pricing date: | Oct. 4
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| Settlement date: | Oct. 9
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| Agent: | RBC Capital Markets, LLC
|
| Distribution: | Morgan Stanley Smith Barney LLC
|
| Fees: | 1.5%
|
| Cusip: | 78009Q570
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