By Marisa Wong
Morgantown, W.Va., March 29 – Royal Bank of Canada priced $2.2 million of contingent income callable securities due March 29, 2018 linked to Microsoft 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 Microsoft shares close at or above the coupon barrier, 70% of the initial price, on the determination date for that quarter.
The notes are callable at par on any quarterly review date.
The payout at maturity will be par plus the final contingent coupon unless the stock finishes below the 75% trigger price, in which case investors will receive a number of shares of Microsoft stock equal to $1,000 divided by the initial share price.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
|
| Issue: | Contingent income callable notes
|
| Underlying stock: | Microsoft Corp. (Nasdaq: MSFT)
|
| Amount: | $2,195,000
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| Maturity: | March 29, 2018
|
| Contingent payment: | 9% per year, payable for quarter if Microsoft stock closes at or above barrier price on determination date for that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus contingent coupon if Microsoft stock finishes at or above trigger price; otherwise, number of shares of Microsoft stock equal to $1,000 divided by initial price
|
| Call option: | At par on any quarterly review date
|
| Initial share price: | $54.21
|
| Coupon barrier: | $37.95, 70% of initial price
|
| Trigger price: | $40.66, 75% of initial price
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| Pricing date: | March 24
|
| Settlement date: | March 30
|
| Agent: | RBC Capital Markets, LLC
|
| Distributor: | Morgan Stanley Wealth Management
|
| Fees: | 1.25%
|
| Cusip: | 78013GAT2
|
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