By Marisa Wong
Madison, Wis., Oct. 3 – Royal Bank of Canada priced $5.2 million of airbag phoenix autocallable optimization securities due March 31, 2016 linked to Twitter, Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 14.25% if Twitter shares close at or above the coupon barrier, 70% of the initial share price, on the observation date for that month.
The notes will be called at par if Twitter shares close at or above the initial share price on any quarterly observation date.
If the notes are not called and the final price of Twitter shares is greater than or equal to the conversion price, 80% of the initial share price, then the payout at maturity will be par.
Otherwise, investors will receive a number of Twitter shares equal to $1,000 divided by the conversion price.
UBS Financial Services Inc. and RBC Capital Markets, LLC are the agents.
| Issuer: | Royal Bank of Canada
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| Issue: | Airbag phoenix autocallable optimization notes
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| Underlying stock: | Twitter Inc. (Symbol: TWTR)
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| Amount: | $5.2 million
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| Maturity: | March 31, 2016
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| Coupon: | 14.25% annualized for each month that stock closes at or above the coupon barrier level on the observation date for that month
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| Price: | Par
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| Payout at maturity: | If final share price is less than conversion price, number of Twitter shares equal to $1,000 divided by conversion price; otherwise, par
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| Call: | At par if Twitter shares close at or above the initial share price on any quarterly observation date
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| Initial share price: | $51.89
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| Coupon barrier level: | $36.32, 70% of initial price
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| Conversion price: | $41.51, 80% of initial price
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| Pricing date: | Sept. 26
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| Settlement date: | Sept. 30
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| Agents: | UBS Financial Services Inc. and RBC Capital Markets, LLC
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| Fees: | 1.5%
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| Cusip: | 78011Y447
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