By William Gullotti
Buffalo, N.Y., July 31 – Royal Bank of Canada priced $10 million of buffered memory phoenix autocallable securities with downside leverage due July 18, 2024 linked to Tesla, Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
If the stock closes at or above the buffer level, 65% of the initial level, on a quarterly observation date, the notes will pay a contingent coupon at an annualized rate of 17%, plus any previously unpaid contingent interest payments.
The notes will be called at par plus coupon if the shares close at or above the initial level on any observation date other than the final date.
The payout at maturity will be par plus the final coupon unless the stock finishes below the 65% buffer level, in which case investors will lose 1.5385% for every 1% decline beyond 35%.
RBC Capital Markets, LLC is the agent. Morgan Stanley Wealth Management is the dealer.
| Issuer: | Royal Bank of Canada
|
| Issue: | Buffered memory phoenix autocallable securities with downside leverage
|
| Underlying stock: | Tesla, Inc.
|
| Amount: | $10 million
|
| Maturity: | July 18, 2024
|
| Coupon: | 17% annualized, paid quarterly, plus any previously unpaid coupons if stock closes at or above buffer level on quarterly observation date
|
| Price: | Par
|
| Payout at maturity: | Par plus all unpaid coupons if stock finishes at or above buffer level; otherwise, lose 1.5385% for every 1% decline beyond 35%
|
| Call: | At par plus coupon if stock closes at or above initial level on a quarterly observation date
|
| Initial level: | $277.90
|
| Buffer level: | $180.64; 65% of initial level
|
| Strike date: | July 13
|
| Pricing date: | July 14
|
| Settlement date: | July 19
|
| Agent: | RBC Capital Markets, LLC,
|
| Dealer: | Morgan Stanley Wealth Management
|
| Fees: | 0.1%
|
| Cusip: | 78016NNZ6
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
