By Susanna Moon
Chicago, June 2 - Royal Bank of Canada priced $1.79 million of contingent coupon callable yield notes due June 3, 2016 linked to Tesoro Corp. shares, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly payment at an annual rate of 10% if Tesoro stock closes at or above the barrier level, 70% of the initial share price, on an observation date for that quarter.
The payout at maturity will be par plus the contingent payment unless the stock finishes below the 70% barrier level, in which case investors will receive a number of shares equal to $1,000 divided by the initial stock price or, at the issuer's option, the cash equivalent.
The notes are callable in whole on any coupon payment date.
RBC Capital Markets, LLC and Barclays are the agents.
| Issuer: | Royal Bank of Canada
|
| Issue: | Contingent coupon autocallable yield notes
|
| Underlying stock: | Tesoro Corp. (NYSE: TSO)
|
| Amount: | $1,793,000
|
| Maturity: | June 3, 2016
|
| Contingent payment: | 10% per year, payable quarterly if Tesoro stock closes at or above coupon barrier level on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If stock finishes at or above barrier level, par plus contingent payment; otherwise, a number of shares equal to $1,000 divided by initial stock price
|
| Call option: | In whole on any coupon payment date
|
| Initial level: | $56.82
|
| Barrier level: | $39.77, 70% of initial share price
|
| Pricing date: | May 29
|
| Settlement date: | June 3
|
| Agents: | RBC Capital Markets, LLC and Barclays
|
| Fees: | 1.75%
|
| Cusip: | 78010UZS9
|
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