By Susanna Moon
Chicago, Aug. 11 – Royal Bank of Canada priced $2.36 million of trigger phoenix autocallable optimization securities due Aug. 12, 2016 linked to Delta Air Lines, Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
If Delta stock closes at or above the trigger price, 65% of the initial share price, on a quarterly observation date, the notes will pay a contingent coupon at an annual rate of 6.25% for that quarter.
If the shares close at or above the initial price on a quarterly observation date, the notes will be called at par plus the contingent coupon.
The payout at maturity will be par plus the contingent coupon unless Delta shares finish below the trigger level, in which case investors will receive a number of Delta shares equal to $1,000 divided by the initial share price.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
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| Issue: | Trigger phoenix autocallable optimization securities
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| Underlying stock: | Delta Air Lines, Inc. (Symbol: DAL)
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| Amount: | $2,359,000
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| Maturity: | Aug. 12, 2016
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| Coupon: | 6.25% per year, payable quarterly if stock closes at or above trigger price on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par plus contingent coupon if Delta shares finish at or above trigger price; otherwise, number of Delta shares equal to $1,000 divided by the initial share price
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| Call: | At par plus contingent coupon if Delta shares close at or above initial price on any quarterly observation date
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| Initial level: | $46.35
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| Trigger level: | $30.13, 65% of initial share price
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| Pricing date: | Aug. 7
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| Settlement date: | Aug. 12
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| Underwriters: | UBS Financial Services Inc. and RBC Capital Markets, LLC
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| Fees: | 1.5%
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| Cusip: | 78013D532
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