By Wendy Van Sickle
Columbus, Ohio, Jan. 20 – Royal Bank of Canada priced $1.58 million of 0% contingent income autocallable securities due Jan. 23, 2017 linked to Aetna Inc. shares, according to a 424B2 filed with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 10.8% if the stock closes at or above the coupon barrier level, 80% of the initial share price, on a determination date that quarter.
The notes will be called at par of $10 plus the contingent coupon if the shares close at or above the initial share price on any determination date.
The payout at maturity will be par plus the final contingent coupon unless the stock finishes below the 80% trigger level, in which case investors will be fully exposed to the loss.
RBC Capital Markets, LLC is the agent. Morgan Stanley Wealth Management is handling distribution.
| Issuer: | Royal Bank of Canada
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| Issue: | Contingent income autocallable securities
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| Underlying stock: | Aetna Inc. (Symbol: AET)
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| Amount: | $1,577,000
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| Maturity: | Jan. 23, 2017
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| Coupon: | 10.8% annual rate each quarter if Aetna shares close at or above barrier level on determination date for that quarter
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| Price: | Par of $10
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| Payout at maturity: | If final share price is greater than or equal to trigger level, par plus final contingent coupon; otherwise, full exposure to the loss
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| Call: | At par plus contingent coupon if Aetna shares close at or above the initial share price on any quarterly determination date other than final determination date
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| Initial share price: | $105.04
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| Trigger/coupon barrier level: | $84.03, 80% of initial share price
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| Pricing date: | Jan. 15
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| Settlement date: | Jan. 21
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| Agent: | RBC Capital Markets, LLC
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| Distribution: | Morgan Stanley Wealth Management
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| Fees: | 1.75%
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| Cusip: | 78013C575
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