By Marisa Wong
Morgantown, W.Va., April 18 – Royal Bank of Canada priced $2 million of issuer callable contingent coupon barrier notes due April 10, 2019 linked to JPMorgan Chase & Co. stock, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon at an annual rate of 9.55% if the stock closes at or above the trigger level, 80% of the initial share price, on the observation date for that quarter.
The notes are callable at par on any interest payment date.
The payout at maturity will be par unless the stock finishes below its 80% trigger price, in which case investors will receive a number of JPMorgan shares equal to $1,000 divided by the initial share price or, at the issuer’s option, the cash equivalent.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
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| Issue: | Issuer callable contingent coupon barrier notes
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| Underlying stock: | JPMorgan Chase & Co. (NYSE: JPM)
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| Amount: | $2 million
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| Maturity: | April 10, 2019
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| Coupon: | 9.55% per year, payable each quarter that 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 unless stock finishes below trigger price, in which case number of JPMorgan shares equal to $1,000 divided by initial share price or, at issuer’s option, cash equivalent
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| Call option: | At par on any interest payment date
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| Initial share price: | $86.38
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| Trigger price: | $69.10, 80% of initial share price
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| Pricing date: | April 5
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| Settlement date: | April 10
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| Underwriter: | RBC Capital Markets, LLC
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| Fees: | 1%
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| Cusip: | 78013GDS1
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