RBC plans callable contingent coupon barrier notes linked to Microsoft

By Angela McDaniels

Tacoma, Wash., Sept. 12 – Royal Bank of Canada plans to price callable contingent coupon barrier notes due Oct. 3, 2018 linked to the common stock of Microsoft Corp., according to an FWP filing with the Securities and Exchange Commission.

Each quarter, the notes pay a contingent coupon if the stock closes at or above the trigger level, 70% of the initial share price, on the observation date for that quarter. The contingent coupon rate is expected to be at least 7% per year and will be set at pricing.

The notes will be callable at par on any interest payment date.

The payout at maturity will be par unless the stock finishes below its trigger level, in which case investors will receive a number of Microsoft shares equal to $1,000 divided by the initial share price or, at the issuer’s option, an amount in cash equal to the value of those shares.

RBC Capital Markets, LLC is the underwriter.

The notes will price Sept. 28.

The Cusip number is 78012KTP2.

© 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.