By Susanna Moon
Chicago, June 17 – Royal Bank of Canada priced $3.24 million of contingent income autocallable securities due June 18, 2015 linked to USG Corp. shares, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly payment of 2.5% if USG stock closes at or above the barrier level, 71% of the initial share price, on the determination date for that quarter.
The notes will be redeemed at par plus the contingent payment if the stock closes at or above the initial level on any quarterly determination date other than the final one.
If the notes are not called and the stock finishes at or above the barrier level, the payout at maturity will be par plus the contingent payment.
Otherwise, the payout will be a number of USG 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 Morgan Stanley Wealth Management as distributor.
Issuer: | Royal Bank of Canada
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Issue: | Contingent income autocallable securities
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Underlying stock: | USG Corp. (Symbol: USG)
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Amount: | $3.24 million
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Maturity: | June 18, 2015
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Contingent coupon: | 2.5% per quarter, payable if USG stock closes at or above barrier level on determination date for that quarter
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Price: | Par of $10.00
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Payout at maturity: | If stock finishes at or above barrier level, par plus contingent payment; otherwise, 0.3286 USG shares
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Call: | At par plus contingent payment if stock closes at or above initial level on any quarterly determination date other than final one
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Initial share price: | $30.43
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Barrier level: | $21.61, 71% of initial share price
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Pricing date: | June 13
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Settlement date: | June 18
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Agent: | RBC Capital Markets, LLC with Morgan Stanley Wealth Management
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Fees: | 1.5%
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Cusip: | 78011Q659
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