RBC eyes phoenix autocallable notes with memory coupon on Cisco

By Sarah Lizee

Olympia, Wash., Nov. 20 – Royal Bank of Canada plans to price phoenix autocallable notes with memory coupon due Dec. 9, 2020 tied to Cisco Systems, Inc. shares, according to an FWP filing with the Securities and Exchange Commission.

If the stock closes at or above the coupon barrier level, 76.92% of the initial level, on a quarterly observation date, the notes will pay a contingent coupon for that quarter at the rate of 10%, plus any previously unpaid contingent interest payments.

The notes will be called at par plus any coupon and any previously unpaid coupons if the shares close at or above the initial share price on any quarterly observation date other than the final date.

The payout at maturity will be par plus the final coupon and any previously unpaid coupons unless the stock finishes below the 76.92% trigger level, in which case investors will lose 1% for each 1% decline of the stock from its initial level.

JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC are the agents.

The notes (Cusip: 78015KHY3) are expected to price Nov. 22.

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