By Wendy Van Sickle
Columbus, Ohio, April 26 – Royal Bank of Canada priced $5.2 million phoenix autocallable notes with memory coupon due April 20, 2022 linked to Baidu, Inc. American Depository shares, according to a 424B2 filing with the Securities and Exchange Commission.
If the stock closes at or above the barrier level, 65% of the initial level, on a quarterly observation date, the notes will pay a contingent coupon for that quarter at an annualized rate of 13%, plus any previously unpaid contingent interest payments.
The notes will be called at par if the shares close at or above the initial share price on any observation date other than the final date.
The payout at maturity will be par plus the final coupon and any previously unpaid coupons unless the stock finishes below the 65% trigger level, in which case investors will be fully exposed to the loss.
RBC Capital Markets, LLC is the agent with JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC as placement agents.
| Issuer: | Royal Bank of Canada
|
| Issue: | Phoenix autocallable notes with memory coupon
|
| Underlying stock: | Baidu, Inc.
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| Amount: | $5,195,000
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| Maturity: | April 20, 2022
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| Coupon: | 13% annualized, plus any previously unpaid coupons, if index closes at or above barrier level on quarterly observation date
|
| Price: | Par
|
| Payout at maturity: | Par plus contingent coupon and previously unpaid coupons if index finishes at or above trigger level; otherwise, full exposure to loss
|
| Call: | At par plus contingent coupon and previously unpaid coupons if index closes at or above initial level on a quarterly observation date
|
| Initial price: | $219.70
|
| Barrier/trigger price: | $142.81, 65% of initial price
|
| Equity ratio: | 306.94
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| Pricing date: | April 1
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| Settlement date: | April 6
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| Agent: | RBC Capital Markets, LLC
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| Placement agents: | JPMorgan Chase Bank, NA and J.P. Morgan Securities
|
| Fees: | 1%
|
| Cusip: | 78016ESC2
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